This paper introduces a new method and system for parameter extraction and automated controller adjustment, suitable for low power digitally controlled DC-DC switch-mode power supplies (SMPS). The system allows closed-loop calibration throughout regular converter operation. During a short-lasting test phase, SMPS parameters, such as output capacitance and load, are estimated by examining the amplitude and frequency of intentionally introduced limit cycle oscillations in duty ratio control variable as well as from its steady state value. Accordingly, a digital compensator is automatically constructed to provide fast dynamic response and good output voltage regulation. In addition, the load estimation data are used for improving efficiency of a converter having segmented transistors. It is performed through a selection of driving sequence resulting in minimized sum of switching and conduction losses. The effectiveness of the system is demonstrated on an experimental 400 kHz, 9 V-to-3.3 V, 10 W, digitally controlled synchronous buck converter.