Problems such as motion artifact and effects of ambient lights have forced developers to design different signal processing techniques and algorithms to increase the reliability and accuracy of the conventional pulse oximeter device. To evaluate the robustness of these techniques, they are applied either to recorded data or are implemented on chip to be applied to real-time data. Recorded data is the most common method of evaluating however it is not as reliable as real-time measurements. On the other hand, hardware implementation can be both expensive and time consuming. This paper presents a low cost MATLAB-based pulse oximeter that can be used for rapid evaluation of newly developed signal processing techniques and algorithms. Flexibility to apply different signal processing techniques, providing both processed and unprocessed data along with low implementation cost are the important features of this design which makes it ideal for research and development purposes, as well as commercial, hospital and healthcare application.