eQEP is typically used in closed loop control applications to have direct interface with a linear or rotary incremental encoder to get position, direction, and speed information from a rotating machine for use in high-performance motion and position-control system. In such applications, it is possible to monitor eQEP outputs for saturation, zero value or out of range based on the application requirement. While estimating the speed/position of rotating machinery, the application can set bounds on the measured speed/position based on the operating profile. Online monitoring of periodic interrupts from eQEP can also be performed for improved diagnostic coverage based on the application profile.