In this paper, the performance of the optimal beam radius indoor positioning (OBRIP) and two-receiver indoor positioning (TRIP) algorithms are analysed by varying system parameters in the presence of an indoor optical wireless channel modelled in line of sight configuration. From all the conducted simulations, the minimum average error value obtained for TRIP is 0.61 m against 0.81 m obtained for OBRIP for room dimensions of 10 m × 10 m × 3 m. In addition, for each simulated condition, TRIP, which uses two receivers, outperforms OBRIP and reduces position estimation error up to 30%. To get a better understanding of error in position estimation for different combinations of beam radius and separation between light emitting diodes, the 90th percentile error is determined using a cumulative distribution frequency (CDF) plot, which gives an error value of 0.94 m for TRIP as compared to 1.20 m obtained for OBRIP. Both algorithms also prove to be robust towards change in receiver tilting angle, thus providing flexibility in the selection of the parameters to adapt to any indoor environment. In addition, in this paper, a mathematical model based on the concept of raw moments is used to confirm the findings of the simulation results for the proposed algorithms. Using this mathematical model, closed-form expressions are derived for standard deviation of uniformly distributed points in an optical wireless communication based indoor positioning system with circular and rectangular beam shapes.