A method for estimating actuator position includes the steps of receiving fluid pressure data signals from a plurality of fluid pressure sensors (31), receiving spool position signals from at least one spool position sensor (33), and receiving actuator position data signals from at least one actuator position sensor (35). Corrected flow rates to and from an actuator (21) are determined with each corrected flow rate being based on fluid pressure data signals, the spool position signals, and an error-correction factor, wherein the error-correction factor is a function of the fluid pressure data signals and the spool position signals. An estimated actuator position is determined wherein the estimated position includes a kinematic component and a dynamic component. Adaptive gain factors are applied to calibrate the estimated actuator position to the actuator position data signals from the actuator position sensor.