A new methodology is proposed to estimate changes in the Earth’s dynamic oblateness (?J2 or equivalently, ?5??C20) on a monthly basis. The algorithm uses monthly Gravity Recovery and Climate Experiment (GRACE) gravity solutions, an ocean bottom pressure model and a glacial isostatic adjustment (GIA) model. The resulting time series agree remarkably well with a solution based on satellite laser ranging (SLR) data. Seasonal variations of the obtained time series show little sensitivity to the choice of GRACE solutions. Reducing signal leakage in coastal areas when dealing with GRACE data and accounting for self-attraction and loading effects when dealing with water redistribution in the ocean is crucial in achieving close agreement with the SLR-based solution in terms of de-trended solutions. The obtained trend estimates, on the other hand, may be less accurate due to their dependence on the GIA models, which still carry large uncertainties.