The non-contacting torque sensor which we propose to build will provide, for the first time, a low cost and reliable means of determining, in real-time, torque qpplied to any ferromagnetic shaft. For army vehicles, the torque sensor would find uses in diagnostic studies, by providing direct, accurate measurements of torque. With the addition of a rate sensing device (not part of this proposal), horsepower can also be determined in real-time. The proposed technique, which is proprietary to nordtech research, has never been used in a torque sensing mechanism before.