Measuring and controlling the flow rate is a widely concerned problem in engineering fields. The direct flow rate measurement employing conventional flow meters and the indirect flow rate measurement using speed/position transducers or other particular techniques would result in inevitable pressure drop in hydraulic circuits, more energy consumption for pumping fluid, and higher cost of hydraulic systems. This paper presents a novel flow rate inferential measurement method and its application in hydraulic elevators. Mathematical modeling of the proposed method is deduced. The key component of the hydraulic elevator circuit, a two-stage proportional flow rate valve, is verified by experiments as one of the contributions of this paper. Based on the mathematical modeling and the valve validation test, the feasibility and validity of the proposed method are verified by the experiments performed on a test rig which is designed to imitate work situations of a hydraulic elevator. Moreover, sensitivity analyses of the proposed flow rate inferential measurement method are carried out to find the ways how to improve the accuracy of the proposed method. It is believed that this method can be applied in various engineering devices.