Switched mode DC-DC converters play an important role in today's renewable energy systems, electric Vehicles, consumer electrical appliances, and many more. While many researchers have designed controllers for DC-DC converters, achieving low implementation cost remains a significant hurdle. This paper proposes a cost-effective observer-based pole placement controller for a PWM voltage-controlled Buck converter with clear step by step design approach. The state space averaged model of the DC-DC power converter is used to design pole placement with integrator compensator and full state observer. Pole placement is employed to improve the transient and steady state behavior of Voltage reference tracking response and full state observer is applied to extract the inductor current with the aim of removing the actual current sensor. Design specifications are set to a settling time of less than 5 msec and an overshoot of less than 5 %. While designing Observer-Controller combination, the separation principle, designing the controller and observer independently, is utilized by placing the observer poles far to the left of the controller poles for the Observer to converge faster. The designed controller and observer is verified with simulation in MATLAB/SIMULINK software and design of developed controller and observer are realized using low-cost analog electronics circuit components The results shows that the proposed system's strength in tracking the reference output voltage even in the presence of input voltage disturbance and the mean value of inductor current is well extracted having only the output voltage and MOSFET gate signal.