Geometric and thermal calibration of CNC machine tools is required in modern machine shops with volumetric accuracy assessment becoming the standard machine tool qualification in many industries. Laser interferometry is a popular method of measuring the errors but this, and other alternatives, tend to be expensive, time consuming or both. This paper investigates the feasibility of using a laser diode based system that capitalises on the low cost nature of the diode to provide multiple laser sources for fast error measurement using multilateration. Laser diode module technology enables improved wavelength stability and spectral linewidth which are important factors for laser interferometry. With more than three laser sources, the set-up process can be greatly simplified while providing flexibility in the location of the laser sources improving the accuracy of the system.