MR (magnetoresistive) heads, the characteristics of which do not depend on medium velocity, are superior to inductive heads at low medium velocity and high recording density. Because of the non-linear relation between applied magnetic field and magnetoresistance, second harmonic distortion occurs. In this study, dependence of the second harmonic distortion on peak shift and error rate was investigated. Intervals between zero cross points of a differentiated readout waveform on a two bit pattern were measured by a time counter. Error rate was calculated by peak shift and standard distribution on a zero cross point interval. Peak shift and error rate as a function of second harmonic distortion is considered using Gaussian distributed noise. It was found that calculations by Gaussian distributed noise correspond to the experimental data.