The present invention provides a method of determining certain propeller parameters for a boat propeller that has a hub, a central axis and a plurality of propeller blades attached to the hub. The method includes providing a laser displacement sensor in proximity to the propeller. The laser displacement sensor has a laser head that generates a laser beam. The laser displacement sensor is used to measure the distance from the laser head to the propeller. The laser head is moved and the laser again measures the distance from the laser head to the propeller after the laser head is moved in relation to the propeller. The movement can be along either or both of the two axes including a first axis that is a linear axis and a second axis that is curved. The method includes computing a selected parameter or parameters by using the measurements that are obtained, the parameters being selected from a group that includes pitch, rake and squareness.