A system for gap-compensated stress sensing, the system comprising: a magnetostrictive sensor including a drive coil configured to generate a magnetic flux in response to receipt of a current and a sensing coil configured to output a stress signal (110s,248) characterizing a stress experienced by a rotating target, wherein the stress signal is based at least upon a measurement of the generated magnetic flux resulting from interaction of the magnetic flux with the target, a drive circuit in communication with the drive coil and configured to provide the current, the drive circuit characterized by including, a first sensing element in parallel with the drive coil and configured to, measure a first electrical property proportional to a voltage applied across the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a first signal based upon the first electrical property measurement; and a second sensing element configured to, measure a second electrical property proportional to a current flowing through the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a second signal based upon the second electrical property measurement; and a controller in electrical communication with the magnetostrictive sensor, the controller being configured to receive the first and second signals (410s,412s), and to determine a gap compensation signal (116s,700s) based upon a function of the first signal and the second signal, wherein the gap is between the drive coil and the target. a magnetostrictive sensor including a drive coil configured to generate a magnetic flux in response to receipt of a current and a sensing coil configured to output a stress signal (110s,248) characterizing a stress experienced by a rotating target, wherein the stress signal is based at least upon a measurement of the generated magnetic flux resulting from interaction of the magnetic flux with the target, a drive circuit in communication with the drive coil and configured to provide the current, the drive circuit characterized by including, a first sensing element in parallel with the drive coil and configured to, measure a first electrical property proportional to a voltage applied across the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a first signal based upon the first electrical property measurement; and a second sensing element configured to, measure a second electrical property proportional to a current flowing through the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a second signal based upon the second electrical property measurement; and a first sensing element in parallel with the drive coil and configured to, measure a first electrical property proportional to a voltage applied across the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a first signal based upon the first electrical property measurement; and measure a first electrical property proportional to a voltage applied across the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a first signal based upon the first electrical property measurement; and a second sensing element configured to, measure a second electrical property proportional to a current flowing through the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a second signal based upon the second electrical property measurement; and measure a second electrical property proportional to a current flowing through the drive coil as a function of time while the generated magnetic flux interacts with at least a portion of the target, and generate a second signal based upon the second electrical property measurement; and a controller in electrical communication with the magnetostrictive sensor, the controller being configured to receive the first and second signals (410s,412s), and to determine a gap compensation signal (116s,700s) based upon a function of the first signal and the second signal, wherein the gap is between the drive coil and the target.