A GPS receiver calculates its position by measuring the distance between itself and three or more GPS satellites. Measuring the time delay between transmission and reception of each GPS microwave signal gives the distance to each satellite, since the signal travels at a known speed. The signals also carry information about the satellites' location. By determining the position of, and distance to, at least three satellites, the receiver can compute its position using trilateration. Receivers typically do not have perfectly accurate clocks and therefore track one or more additional satellites to correct the receiver's clock error.

The user's GPS receiver is the user segment (US) of the GPS system. In general, GPS receivers are composed of an antenna, tuned to the frequencies transmitted by the satellites, receiver-processors, and a highly-stable clock (often a crystal oscillator). They may also include a display for providing location and speed information to the user. A receiver is often described by its number of channels: this signifies how many satellites it can monitor simultaneously. Originally limited to four or five, this has progressively increased over the years so that, as of 2006, receivers typically have between twelve and twenty channels.

GPS receivers may include an input for differential corrections, using the RTCM SC-104 format. This is typically in the form of a RS-232 port at 4,800 bit/s speed. Data is actually sent at a much lower rate, which limits the accuracy of the signal sent using RTCM. Receivers with internal DGPS receivers can outperform those using external RTCM data. As of 2006, even low-cost units commonly include Wide Area Augmentation System (WAAS) receivers.

Many GPS receivers can relay position data to a PC or other device using the NMEA 0183 protocol. NMEA 2000 is a newer and less widely adopted protocol. Both are proprietary and controlled by the US-based National Marine Electronics Association. References to the NMEA protocols have been compiled from public records, allowing open source tools like gpsd to read the protocol without violating intellectual property laws. Other proprietary protocols exist as well, such as the SiRF and MTK protocols. Receivers can interface with other devices using methods including a serial connection, USB or Bluetooth.