Using optical Ramsey interferometry, we precisely measure the laser-induced AC-stark shift on the $S_{1/2}$ -- $D_{5/2}$ quantum bit transition near 729 nm in a single trapped $^{40}$Ca$^+$ ion. We cancel this shift using an additional laser field. This technique is of particular importance for the implementation of quantum information processing with cold trapped ions. As a simple application we measure the atomic phase evolution during a $n times 2pi$ rotation of the quantum bit.