Generating auditory localization cues is an important feature in spatial audio processing engines that help generate a sense of plausibility of virtual sounds to the user, especially in XR applications (VR/AR/MR). Algorithmic approaches have been proposed to quantify the engine’s ability to reproduce interaural level difference (ILD) cues through regression and statistical methods, which provides a useful standardization and automation method to estimate the localization accuracy potential of a spatial audio engine. This engineering brief builds off this approach to include interaural time difference (ITD) cues as part of the analysis through the use of the interaural transfer function (ITF). The use of the ITF, comprising both ILD and ITD information, is demonstrated and discussed. Even though this approach can substitute critical listening studies as an evaluation method, it has not been validated through comparisons with localization user studies. This brief concludes with a review of listening studies that can be used to gain confidence in this algorithmic approach to measure localization accuracy potential in a spatial audio engine.