Measurement of acoustic backscattering properties of targets requires removal of the range dependence of echoes. This process is called range compensation. For conventional sonars making measurements in the transducer farfield, the compensation removes effects of geometrical spreading and absorption. For parametric sonars consisting of a parametric acoustic transmitter and a conventional-sonar receiver, two additional range dependences require compensation when making measurements in the nonlinearly generated difference-frequency nearfield: an apparently increasing source level and a changing beamwidth. General expressions are derived for range compensation functions in the difference-frequency nearfield of parametric sonars. These are evaluated numerically for a parametric sonar whose difference-frequency band, effectively 1–6 kHz, is being used to observe Atlantic herring (Clupea harengus) in situ. Range compensation functions for this sonar are compared with corresponding functions for conventional sonars for the cases of single and multiple scatterers. Dependences of these range compensation functions on the parametric sonar transducer shape, size, acoustic power density, and hydrography are investigated. Parametric range compensation functions, when applied with calibration data, will enable difference-frequency echoes to be expressed in physical units of volume backscattering, and backscattering spectra, including fish-swimbladder-resonances, to be analyzed.