Advanced piezoelectric dynamometers with a wide frequency bandwidth are required for cutting force measurement in high-speed milling and micromilling applications. In many applications, the signal bandwidth is limited by the dynamic response of the mechanical system, thus compensation techniques are necessary. The most effective compensation techniques for a full 3D force correction require an accurate and complex identification phase. Extended Kalman filtering is a better alternative for input force estimation in the presence of unknown dynamic disturbances. The maximum bandwidth that can be currently achievable by Kalman filtering is approximately 2 kHz, due to crosstalk disturbances and complex dynamometer’s dynamics. In this work, a novel upgraded Kalman filter based on a more general model of dynamometer dynamics is conceived, by also taking into account the influence of the force application point. By so doing, it was possible to extend the frequency bandwidth of the device up to more than 5 kHz along the main directions and up to more than 3 kHz along the transverse directions, outperforming state-of-the-art methods based on Kalman filtering.