A compensating DFLL (CDFLL) is disclosed that utilizes temperature readings at regular intervals in combination with production characterization data of a reference oscillator to compensate for frequency drift and nominal frequency error. In some implementations, the CDFLL selects a calibration value that is not optimal for frequency accuracy to minimize accumulated frequency error over time. More particularly, during a calibration run, mismatch between an ideal frequency and an actual frequency is measured, and the measurement is used as a starting point for a next calibration run, such that the accumulated frequency error is averaged almost to zero over time.