Cloud computing is a developing technology in today’s Internet world which offers the users with on demand access to resources through different service models. In spite of providing many advantages over the traditional computing, there are some critical issues in cloud computing. Load balancing is a crucial issue in cloud computing that distributes the user’s requests to the nodes in such a manner to balance the load on nodes. A proper load balancing algorithm is required to execute the process and manage the resources. The common objective of load balancing algorithm is to achieve the minimum execution time and proper utilization of resources. In this paper, we proposed a new technique to achieve the load balancing called packet-based load balancing algorithm. The motive of this algorithm is to design the concept of load balancing using the grouping of packages and perform the virtual machine replication, if requested package is not available. In this paper, task is achieved with minimum execution time and execution cost which is profitable for the service provider and the user.