Vibrations are limiting the productivity and the process quality of cutting machine tools. For the monitoring of these vibrations, often external sensors, such as acceleration sensors, are used. These external systems require additional cost and maintenance effort. This paper presents a virtual sensor, which is capable of detecting vibrations at the tool center point, based on internal machine data. External sensors are only necessary once for model identification. This reduces the overall cost of the system significantly. The virtual sensor uses the high-quality data of the linear position encoder near the ball screw nut and calculates the vibrations at the tool tip by using transmissibility functions. This paper explains the theory behind the used transmissibility functions and describes how they are measured, by comparing different experimental approaches to identify the modal parameters of cutting machine tools. After the identification of the sensor, a dynamical test cycle is used to prove the physical correctness.