Shifting shadow moiré iterative algorithm and procedures for both the calibration of phase shifter and noise reduction approaches are proposed. Compared with the traditional shifting shadow moiré method, the proposed method is insensitive to the height dependent effects and can determine the pointwise phase step during the process of demodulation. The effectiveness of the proposed method is demonstrated by both simulations and experiments. They are shown that the proposed method can effectively minimize the effects of the phaseshifting errors and possess a superior performance than existing typical phase shifting algorithms in shifting shadow moiré technique.