Presented in this paper is a novel digital demodulation method for fiber-optic interferometric sensors. The method controls the modulation depth at π/2 radians and uses only five key points sampling values every modulation period. Both an automatic accurate sampling method and a modulation depth control method are introduced. Fewer resources are needed for the calculation processes to obtain the phase shift. High speed A/D converter is not necessary, which results in significant reduction of the manufacturing cost of fiber-optic interferometric sensors. A bias stability of 0.64 deg h −1 (i.e. 2.23 µrad) is demonstrated after using this method on an interferometric fiber-optic gyroscope (IFOG) based on the Sagnac effect.