The invention discloses a calibration device and a method for carrying out calibration on a transfer function in a monitoring device. The method comprises the steps: setting m parameters of the transfer function as parameter values of first iteration; carrying out at least one iterative process; in a jth iterative process, if a calculated error evaluation value s is smaller than an evaluation target value according to AD1-ADn, Rxp1-Rxpn, and a parameter value of jth iteration, confirming the parameter value of the jth iteration as a calibration result; if not, adjusting the parameter value of the jth iteration according to a shrinkage algorithm, obtaining a parameter value of j+1th iteration, and continuing the next iterative process, wherein the Rxp1-Rxpn are n index values of a monitored object, and the AD1-ADn are n sampling values. Due to the fact that the shrinkage algorithm is adopted to carry out iterative calculation on the parameters of the transfer function, the process of missing solution of equations is avoided, the method can be applied to situations of a non-linear transfer function and a non-least-square error evaluation function, and accordingly the calibration method has wide application situations.