Understanding Calibration and Truncation Error Propagation in Training-Free Low-Rank Compression for LLMs

Training-free low-rank compression frameworks have been gaining prominence for LLM compression given their effectiveness in reducing model parameter count while maintaining task-level accuracy. However, existing SOTA frameworks share two key limitations: (1) residual errors in calibration data activations accumulate across layers during compression, causing misalignment between representations simulated at compression time and those experienced at inference; (2) the assumption that layer importance distribution is preserved post-compression does not hold. Together, these two effects introduce misalignment in the compression process in relation to the deployed model. We study these effects and propose a simple, training-free methodology compatible with existing frameworks to mitigate them, comprising: (1) Layer-by-Layer Compression with Calibration Correction; (2) Iterative Compression with Rank Allocation Correction. Implemented atop an existing SOTA decomposition framework, and evaluated on Llama and Qwen3 models across various benchmarks and compression rates, our approach demonstrates up to ~1-2.5 accuracy point improvements over per-weight and joint decomposition baselines on zero-shot tasks.