Traditionally sleeve length is measured to include not only your arm but the width across the back of your shoulders as well.

To measure your sleeve length:

Get a tape measure and start it at the nape of your neck (the center of the base of  your neck), measure across to your shoulder, still holding the tape, measure down the back of your arm, over your BENT elbow and end at your wrist (where you like your sleeve to end).

In summary: 
Center Back (nape of neck)
Across to your shoulder
Down the back of your arm to your elbow
Bend your elbow some and continue on to your wrist.

That's it. You should end up with a number somewhere between 29" and 38". How to measure your Sleeve Length SarahWinterClothworks.com