An electric motor system includes an electric motor, a temperature sensor mounted therein capable of measuring a local temperature and generating a temperature related signal, and a processor configured to calculate an actual temperature of a rotor magnet from the temperature related signal, and an actual output torque from the actual rotor magnet temperature. A method for determining the actual output torque of a motor includes sensing a temperature within the motor, calculating a rotor magnet temperature from the sensed temperature, and calculating the actual output mechanical torciue from the rotor magnet temperature.