Some embodiments of the invention a circuit configured to apply a time domain processing sequence to a modulated input signal to estimate a mean value of the modulated input signal and to subtract the estimated mean value from the modulated input signal, thereby removing the DC offset from the input signal. In one particular embodiment, the time domain processing sequence is based on integration and differentiation of a demodulated output signal. In such an embodiment, a circuit is configured to integrate a demodulated signal to generate an integrated signal having a triangular shaped output signal. The circuit then measures the slopes of the integrated signal, by differentiation of the triangular shaped integrated signal, and generates an appropriate DC offset correction signal based upon the measured slopes. The DC offset correction signal may be added on top of the actual input signal to cancel the unwanted DC offset component.