A sensor arrangement to be used with a rotatable diametrically magnetized magnetic source, the sensor arrangement comprising - a plurality of magnetic field sensors (MSO - MS15) arranged along a circularly shaped circumference, each of the magnetic field sensors (MSO - MS15) configured to provide a sensor signal corresponding to a magnetic field intensity, wherein the center of the circumference is approximately coincident with the center of rotation of the magnetic source; and - an evaluation circuit comprising a plurality of input channels, each of the input channels configured to receive a digital sensor value (H0 - H15) derived from a respective one of the sensor signals, the evaluation circuit configured to determine a rotation angle (Φ) between a reference axis and an axis defined by a reference value transition derived from a subset of the digital sensor values (H0 - H15) received, the reference axis depending on the plurality of magnetic field sensors (MSO - MS15) and being defined by a straight connection line between two opposite magnetic field sensors, the reference value transition being located between a magnetic north pole and a magnetic south pole of the magnetic source; wherein the subset comprises a first, a second, a third and a fourth digital sensor value and the evaluation circuit is configured - to associate respective sensor positions to the plurality of magnetic field sensors (MSO - MS15); - to determine a first interpolated position on the circularly shaped circumference corresponding to the reference value transition as a function of the first and the second digital sensor value; - to determine a second interpolated position on the circularly shaped circumference corresponding to the reference value transition as a function of the third and the fourth digital sensor value; and - to derive the rotation angle (Φ) from the first and the second interpolated position (P1, P2). - a plurality of magnetic field sensors (MSO - MS15) arranged along a circularly shaped circumference, each of the magnetic field sensors (MSO - MS15) configured to provide a sensor signal corresponding to a magnetic field intensity, wherein the center of the circumference is approximately coincident with the center of rotation of the magnetic source; and - an evaluation circuit comprising a plurality of input channels, each of the input channels configured to receive a digital sensor value (H0 - H15) derived from a respective one of the sensor signals, the evaluation circuit configured to determine a rotation angle (Φ) between a reference axis and an axis defined by a reference value transition derived from a subset of the digital sensor values (H0 - H15) received, the reference axis depending on the plurality of magnetic field sensors (MSO - MS15) and being defined by a straight connection line between two opposite magnetic field sensors, the reference value transition being located between a magnetic north pole and a magnetic south pole of the magnetic source; wherein the subset comprises a first, a second, a third and a fourth digital sensor value and the evaluation circuit is configured - to associate respective sensor positions to the plurality of magnetic field sensors (MSO - MS15); - to determine a first interpolated position on the circularly shaped circumference corresponding to the reference value transition as a function of the first and the second digital sensor value; - to determine a second interpolated position on the circularly shaped circumference corresponding to the reference value transition as a function of the third and the fourth digital sensor value; and - to derive the rotation angle (Φ) from the first and the second interpolated position (P1, P2).