Positioning accuracy is a challenging issue for location-based applications using a low-cost global positioning system (GPS). This paper presents an effective approach to improving the positioning accuracy of a low-cost GPS receiver for real-time navigation. The proposed method precisely estimates position by combining vehicle movement direction, velocity averaging, and distance between waypoints using coordinate data (latitude, longitude, time, and velocity) of the GPS receiver. The previously estimated precious reference point, coordinate translation, and invalid data check also improve accuracy. In order to evaluate the performance of the proposed method, we conducted an experiment using a GARMIN GPS 19xHVS receiver attached to a car and used Google Maps to plot the processed data. The proposed method achieved improvement of 4–10 meters in several experiments. In addition, we compared the proposed approach with two other state-of-the-art methods: recursive averaging and ARMA interpolation. The experimental results show that the proposed approach outperforms other state-of-the-art methods in terms of positioning accuracy.