This paper proposes an improved low-cost inertial guidance solution algorithm to address the issue of insufficient solution accuracy of traditional low-cost device inertial guidance algorithms. The influence of the Earth’s rotation is introduced into the attitude update of the traditional low-cost inertial guidance algorithm, thereby improving the navigation and positioning capability of the carrier. The results of the simulation demonstrate that the proposed algorithm outperforms the traditional algorithm in terms of attitude angle error, with a reduction of four orders of magnitude. Furthermore, the northward and skyward velocity errors are reduced by one order of magnitude, while the eastward velocity dispersion is effectively suppressed. The positioning accuracy is improved by 66%. These findings provide valuable insights that can inform the development of low-cost MEMS navigation engineering applications.