Automated Guided Vehicle (AGV) is an interesting topic in recent times with many published related to navigation and obstacle avoidance algorithms for AGV. These studies all have one thing in common that to apply these algorithms to AGV requires high cost for technical solutions. This result reflects the fact that AGVs are very expensive. Therefore, AGV is still only found in large factories, or used for special tasks. With the aim of simplifying the technique and reducing the production cost for AGV, this study will design an obstacle avoidance algorithm using very popular accessories with low cost. After creating the algorithm, this study also built an AGV to test the proposed algorithm. The results of this study will be very useful for the development of AGVs that are reasonably priced, meeting the diverse needs of the market for AGVs.