This paper describes an algorithm to estimate realtime vehicle velocity using image processing technique from the known camera calibration parameters. The presented algorithm involves several main steps. First, the moving object is extracted by utilizing frame differencing technique. Second, the object tracking method is applied and the speed is estimated based on the displacement of the object-s centroid. Several assumptions are listed to simplify the transformation of 2D images from 3D real-world images. The results obtained from the experiment have been compared to the estimated ground truth. From this experiment, it exhibits that the proposed algorithm has achieved the velocity accuracy estimation of about ± 1.7 km/h.