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Cloud computing has become an emerging trend for the software industry with the requirement of large infrastructure and resources. The future success of cloud computing depends on the effectiveness of instantiation of the infrastructure and utilization of available resources. Load Balancing ensures the fulfillment of these conditions to improve the cloud environment for the users. Load Balancing dynamically distributes the workload among the nodes in such a way that no single resource is either overwhelmed with tasks or underutilized. In this paper we propose a threshold based load balancing algorithm to ensure the equal distribution of the workload among the nodes. The main objective of the algorithms is to stop the VMs in the cloud being overloaded with tasks or being idle for lack allocation of tasks, when there are active tasks. We have simulated our proposed algorithm in the Cloudanalyst simulator with real world data scenarios. Simulation results shows that our proposed threshold based algorithm can provide a better response time for the task/requests and data processing time for the datacenters compared to the existing algorithms such as First Come First Serve (FCFS), Round Robin(RR) and Equally Spread Current Execution Load Balancing algorithm(ESCELB).