Abstract. Walther’s estimation calculus was designed to prove the termination of functional programs, and can also be used to solve the similar problem of proving the well-foundedness of induction rules. However, there are certain features of the goal formulae which are more common to the problem of induction rule well-foundedness than the problem of termination, and which the calculus cannot handle. We present a sound extension of the calculus that is capable of dealing with these features. The extension develops Walther’s concept of an argument bounded function in two ways: firstly, so that the function may be bounded below by its argument, and secondly, so that a bound may exist between two arguments of a predicate. Our calculus enables automatic proofs of the well-foundedness of a large class of induction rules not captured by the original calculus.