Photoplethysmograph (PPG) is a simple and cost effective method to assess cardiovascular related parameters such as heart rate, arterial blood oxygen saturation and blood pressure. PPG signal consists of not only synchronized heart beats, but also the rhythms of respiration. The PPG sensor, which consists of infrared light-emitting diodes (LEDs) and a photodetector, allows a simple, reliable and low-cost means of monitoring the pulse rate. In this project, PPG signals are acquired through a customized data acquisition process using Arduino board to control the pulse circuit and to obtain the PPG signals from human subjects. Using signal processing techniques, including filters, peak detections, wavelet transform analysis and power spectral density, the heart rate (HR) and breathing rate (BR) are be obtained simultaneously. Estimations of HR and BR are conducted using MATLAB algorithm developed based on the wavelet decomposition techniques to extract the heart and respiration activities from the PPG signals. The values of HR and BR obtained using the algorithm are similar to the values obtained by manual estimation for seven sample subjects where the range of percentage errors are small about 0–9.5% for the breathing rate and 2.1–5.7% for the heart rate.