Today, Cryptographic schemes play a major role in storage, retrieval and transfer of data and code in a secured manner. The major factors which determine the efficiency of a cryptographic system are computational speed, level of security provided, cost effectiveness and key size of the algorithm. Choosing the optimal bit size for keys in encryption and decryption algorithm is necessary for the efficient computation of the algorithm and bit size of the key is directly proportional to the complexity of the algorithm and in turn cost of the encryption and decryption algorithm. In this paper, we propose a novel cost-effective small key size symmetric key algorithm which is suitable to all sizes of data and all kinds of data such as audio and video because of its low key size and high computational speed.