The invention defines a low-cost titanium alloy, comprising iron and chromium as principal alloying elements, of composition Ti-xFe-yCr, wherein x = 1 - 9% and y = 0.2 - 3%, percentages expressed in weight with reference to total alloy weight. Said alloy, obtained through powder metallurgy commencing from a mixture of titanium powders with stainless steel powders, offers lower processing and raw material costs and maintains similar mechanical properties to those obtained with standard titanium alloys. In addition the invention defines a method for obtaining said low-cost titanium alloy.