Inversion of precise true height electron density profile from the measured virtual heights by the Ionosonde is a quite challenging and ill‐posed problem. In this paper, we present a new method to compute the true height profiles from ionograms that relies on computing the propagation path of radio waves with time. This method does not use predefined polynomial functions to fit the vertical electron density distribution; hence, it is free from fitting errors. Instead, this method implements iterative corrections in the electron density gradient between the successive points and progressively reconstructs the true height profile. This Iterative Gradient Correction (IGC) method assures minimizing the error to below a tolerance limit at all sampled points on the ionogram. The true height profiles derived from this method exhibit better accuracy than those derived from the widely used POLynomial ANalysis, particularly, at cusp and F2‐peak regions. Further, the IGC method gives the best results at higher sampling resolutions of ionograms and is less sensitive to scaling errors.