A location engine that estimates the barometric pressure measurement bias of a wireless terminal, resulting in an improved estimate of elevation of the wireless terminal. The location engine generates an estimate of measurement bias by comparing the barometric pressure measured by the wireless terminal while at that elevation and the barometric pressure that corresponds to an estimated elevation of the wireless terminal when it made the pressure measurement (i.e., the expected pressure). The estimated elevation is based on an inferred above-ground height and the local terrain elevation, and the expected pressure is based on the measurement of barometric pressure at the pressure reference and the estimated elevation. The location engine infers the height based on various techniques disclosed herein. The location engine can use the measurement bias to adjust subsequent pressure measurements reported by the wireless terminal, in order to generate an improved estimate of elevation of the wireless terminal.