A method of calibrating a magnetoelastic torque sensor comprising the steps of: a) mating a torque transducer with a magnetometer, wherein the magnetometer includes at least two channels (33, 35) that receive signals indicative of a magnetic field generated by the torque transducer responsive to application of torque. (20, 22); b) applying a desired magnitude of torque (20, 22) to the torque transducer at each of a plurality of defined calibration points, wherein the defined calibration points include a maximum applied torque in the first direction, a first zero point recorded after release of the maximum torque in the first direction, a maximum applied torque in a second direction opposite the first direction, and a second zero point recorded after a release of the maximum torque from the second direction; c) recording output signals indicative of a magnetic field generated at each of the defined calibration points communicated to each of the at least two channels (33, 35); d) pointing the magnetoelastic torque sensor toward magnetic north and storing a north output value for each of the at least two channels (33, 35), e) pointing the magnetoelastic torque sensor toward magnetic south and storing a south output value for each of the two channels (33, 35); f) determining a hysteresis value, a span between an output at each calibration point received by each of the two channels (33, 35), and a hysteresis correction value according to a relationship between the span of the output and the hysteresis value; and g) determining a correction factor for each of the at least two channels (33, 35) based on the determined hysteresis value and hysteresis correction value. a) mating a torque transducer with a magnetometer, wherein the magnetometer includes at least two channels (33, 35) that receive signals indicative of a magnetic field generated by the torque transducer responsive to application of torque. (20, 22); b) applying a desired magnitude of torque (20, 22) to the torque transducer at each of a plurality of defined calibration points, wherein the defined calibration points include a maximum applied torque in the first direction, a first zero point recorded after release of the maximum torque in the first direction, a maximum applied torque in a second direction opposite the first direction, and a second zero point recorded after a release of the maximum torque from the second direction; c) recording output signals indicative of a magnetic field generated at each of the defined calibration points communicated to each of the at least two channels (33, 35); d) pointing the magnetoelastic torque sensor toward magnetic north and storing a north output value for each of the at least two channels (33, 35), e) pointing the magnetoelastic torque sensor toward magnetic south and storing a south output value for each of the two channels (33, 35); f) determining a hysteresis value, a span between an output at each calibration point received by each of the two channels (33, 35), and a hysteresis correction value according to a relationship between the span of the output and the hysteresis value; and g) determining a correction factor for each of the at least two channels (33, 35) based on the determined hysteresis value and hysteresis correction value.