The present invention provides an apparatus and method for estimating the realtime position of a clutch piston during the fill cycle using noisy pressure measurements which ensures proper and desired clutch operation. Pressures on both sides of a flow controlling orifice, at the fluid control actuator and the clutch cylinder are measured and these measurements in conjunction with other system parameters such as orifice size, clutch volume and return spring characteristics are used to solve nonlinear dynamic equations (algorithms) which reside in a microprocessor. The microprocessor provides outputs corresponding to an estimate of the current position of the clutch piston, an estimate of the current speed of the piston and an estimate of the current hydraulic pressure. The method can also be utilized to detect clutch wear.