A novel total harmonic distortion (THD) measuring technique is proposed. A modified Volterra series using harmonics in place of powers of the sinusoidal input is used to identify the nonlinear models of the source and the device under test (DUT). The least-mean square (LMS) adaptive algorithm is applied for identification. While maintaining comparable speed and accuracy this technique provides a more flexible test procedure than conventional methods, in terms of the frequency resolution, the number of samples, and the sampling rate. It outperforms conventional methods when there is a bin energy leakage, which occurs in a non-coherent system. In addition, it is real-time computing while other conventional methods post process blocks of data. Simulation results collaborate the analytical results.