This paper describes Declination interpolation method in the application of Digital Magnetic Compass(DMC) with small capacity memory for relatively low-priced system. The purpose of this study is to find accurate declination values using Declination Lookup Table(DLT) and Secular Variation Table(SVT) with the Bilinear interpolation method having four points data only. World Magnetic Model with Gauss coefficients produced by NOAA is used in the calculation of DLT and SVT at desired years. To verify the applicability of the proposed method, the simulation tests and the error analysis are carried out in this work. As results from tests, the interpolation error is within 0.01 degree that is much enough to implement high accurate DMC comparing with commercial DMCs on the market. In summary, the declination interpolation method, proposed in this study, can be useful in the application of DMC.