A system for active dynamic balancing of a rotating tool driven by a motor having a shaft supported by a first and second bearing on opposing sides of the motor includes an acceleration sensing assembly configured to sense radial accelerations on the shaft producing an acceleration signal indicative of the radial accelerations. A correcting mass assembly is configured to rotate with the shaft and to move at least one mass radially to the shaft responsive to a correcting signal. A controller is configured to receive the acceleration signal generating a correcting signal by means of a closed loop iterative algorithm.