A vehicle includes a powertrain having first and second rotatable members, speed sensors, and a controller. The speed sensors generate output signals encoding the speeds of the respective first and second rotatable members. The controller calculates a rotation angle of the members using the output signals and estimates a torque value in the powertrain as a function of the rotation angles. The sensors may count the teeth of respective first and second toothed gear elements and encode the count as the output signals. The controller may estimate the torque value as a function of a linear coefficient and the present gear ratio of the sensors. The controller may also detect a commanded upshift of the transmission and detect a fill event of an oncoming clutch of the transmission as a function of the corresponding rotation angles for the rotatable members. The members may be input, output, or intermediate members.