This article proposes a new self-calibration method for circular encoders based on inertia and a single read-head. The velocity curves of the circular encoder are fitted with polynomials and, based on the principle of circle closure and the periodicity of the distribution for angle intervals, the proportionality between the theoretical value and the actual value of each angle interval is obtained. In the experimental system constructed, the feasibility of the proposed method was verified through self-calibration experiments, repeatability experiments, and comparative experiments with the time-measurement dynamic reversal (TDR) method. In addition, this article also proposes an iterative method to improve the self-calibration accuracy. Experimental verification was carried out, and the results show that the new method can effectively compensate for the error of angle measurement in the circular encoder. The peak-to-peak value of the error of angle measurement was reduced from 239.343” to 11.867”, and the repeatability of the calibration results of the new method was less than 2.77”.