Abstract: An arrangement and method for providing compensation to a cyclical input signal is disclosed. The arrangement comprises a first detection unit (20) for detecting a first event in a cyclical output signal; a compensation signal generation unit (14) for generating a compensation signal; and a signal combination unit (8) for combining the compensation signal and the cyclical input signal to obtain the cyclical output signal. The compensation signal generation unit (14) is arranged to adjust the compensation signal at an instant which has a determined relationship with the detection of the first event. By adjusting the compensation signal at the right instant in a cycle of the cyclical output signal, the adjustment will not influence the further processing of the cyclical output signal. The method can be used to compensate the offset and sensitivity characteristics of a sensor.