Inter satellite laser interferometry is a central component of future space-borne gravity instruments like LISA, eLISA, NGO and future geodesy missions. The inherently small laser wavelength allows to measure distance variations with extremely high precision by interfering a reference beam with a measurement beam. The readout of such interferometers is often based on tracking phasemeters, able to measure the phase of an incoming beatnote with high precision over a wide range of frequencies. The implementation of such phasemeters is based on all digital phase-locked loops, hosted in FPGAs. Here we present a precise model of an all digital phase locked loop that allows to design such a readout algorithm and we support our analysis by numerical performance measurements and experiments with analog signals.