There are quite a few principles that are being used for torque measurement. It is a big application in motor testing labs, where SRM, Atlas-Copco, Penta, Scania, SAAB, AVL and Volvo (the ones I work with) use rigs with up to megawatt brakes.
Mostly, a coupling with either magnetic, optic or strain gauge measuring devices are used. Those machines can be very accurate with errors down in the .1 percent range.
For extreme precision, Siemens used to produce so-called Pendelmaschine where the brake (DC or AC motor) was arranged in bearings so that the reaction forces from the rotating motor could be measured statically as a force between motor stator and the support. I do not see any new Pendelmaschine any more. With pendelmaschine, there were problems with highly dynamic load changes (elasticity in brake starts oscillations).
For medium accuracy - one or two percent - it is easier to just measure how much power the brake machine generates. There are lots of losses to be compensated for, but once such a set-up has been calibrated, it is very reliable and easy to use. A DC generator is very easi to use and calibrate, but an AC induction generator is a lot cheaper and sturdier. I did measurements on a little motor this autumn and because of heavy EMI, we tried to use 50 Hz power measurements. We had quite usable results also with that simple technique and I am now testing an Arduino in such an application. I will look for a write-up showing the principles and what results we got. Sorry, I have to "unidentify" it first. Will take some time.
Gunnar Englund
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Half full - Half empty? I don't mind. It's what in it that counts.