A method is presented for correcting estimates of engine output torque and accessory load torque. Engine output torque estimates are corrected when the accessory is disengaged from the engine. Accessory load torque is learned, or corrected, when the accessory is engaged to the engine. In one example, these corrections are made when engine output torque is known to be substantially zero from torque converter speed ratio or from the timing of the overrunning clutch engagement. This information is then used to control engine output torque to improve drive feel and vehicle performance.