This paper presents a new method of vessel heave compensation based on a new breed of commercially available low cost GPS receivers that can measure and record the carrier phase observable. The technique is based on the extraction of a highly accurate velocity estimate from standalone receivers using time differenced carrier phase observable. Two trials have been undertaken, one using a Spirent GPS signal simulator and another conducted at sea. The simulator trial thoroughly tested the use of commercially available low cost receivers for this method of velocity estimation through their comparison with higher grade receivers and quantified the errors under varying dynamics. The sea trial tested the heave algorithm against other heave sensors and an accurate reference provided by an Applanix POSRS and showed it to be capable of producing a heave output to rival inertial based heave sensors using commercially available low cost GPS receivers.