In the existing energy efficient routing protocols for mobile ad hoc networks such as minimum battery cost routing (MBCR) and min-max battery cost routing (MMBCR) the cost functions are calculated in the route request phase and the decision of selecting a route is taken by the destination node. It is more cost effective and energy efficient if the cost functions are calculated in the route reply phase and the decision of selecting a route for data transmission is taken by the source node. In this paper I propose a novel routing algorithm for mobile ad hoc networks called Source based min-max battery cost routing (SBMMBCR) protocol wherein the routing decision is taken by the source node considering the changes in energy levels during the route reply phase. The performance of the proposed protocol is compared with the existing MMBCR protocol based on application oriented metrics such as throughput, packet delivery ratio, end-to-end delay, normalized routing load and residual energy. Simulation is carried out using NS2. From the simulation results it is observed that the proposed protocol SBMMBCR outperforms MMBCR by giving more network lifetime as well as better throughput, packet delivery ration. Average end-to-end delay is less and the residual energy is also more for SBMMBCR as compared to MMBCR protocol.