A method for estimating torque control error at an electric machine considers the effects of current sensor error characteristics. Systems and methods can be practiced to determine the maximum sensor error that can be tolerated without causing unacceptable torque error. An example method uses sensor characteristics and machine characteristics to determine current sensing error, current control error, and torque control error. Determining the lowest sensor accuracy required for a desired torque control accuracy can facilitate the use of lower cost sensors in current-feedback controlled electric drive systems without compromising performance. Other applications can include vehicle diagnostics and torque error compensation.