A torque transfer system for transferring torque between a first rotary member and a second rotary member includes a clutch pack that is operably disposed between the first rotary member and the second rotary member to regulate torque transfer therebetween and a clutch actuator for regulating engagement of the clutch pack. A controller generates a dithered control signal by superimposing a dithering signal onto a digital control signal. The controller determines a time averaged duty cycle DC.sub.avg of the dithered control signal, determines an amplitude AMP of the dithered control signal, determines a wave function WF that describes a wave shape of the dithered control signal and calculates a pulse duty cycle PDC for each pulse of the dithered control signal using the average duty cycle, amplitude, and wave function.