The present invention is in a "virtual RPM sensor" which is preferably implemented by means of a software process. The software determines the RPM of a rotating machine using an adaptive signal processing algorithm. Preferably, the input to the software system of the present invention is digitized waveform data from either a vibration transducer on a rotating machine or vibration data stored in a database or file. The present invention permits the determination of the RPM of a rotating machine without the requirement of additional hardware so that readings may be obtained inexpensively, accurately and without interrupting machine operation.