The cyclic error of a homodyne interferometer is caused mainly by phase mixing due to the imperfection of polarizing optical components such as polarizing beam splitters. In Appl. Opt. 43, 2443 (2004), we concentrated on the relationship between these imperfect optical characteristics and the cyclic error and found the preamplifier-gains condition for removing the cyclic error. Here we demonstrate the cyclic error correction method experimentally and show that the method can be applied in real time. We obtained 0.04-nm cyclic errors, with a standard deviation above 5 mu m. (c) 2005 Optical Society of America.