Abstract: There is disclosed an air powered tool for applying torque to threaded fasteners and the like. The tool comprises a motor, a gear reducer and a driver whereby the motor turns at a higher rate than the driver. In order to provide better resolution of angle sensings, an angle sensor is arranged to determine rotation of the motor rather than of the driver. Because the fastener, driver, gear reducer and motor tend to torque up thereby producing an exaggerated reading for the angle of advance of the fastener, means are provided to compensate for the rotation sensing as a function of applied torque.