Although technology for automatic grading of multiple choice exams has existed for several decades, it is not yet as widely available or affordable as it should be. The main reasons preventing this adoption are the cost and the complexity of the setup procedures. In this paper, Eyegrade, a system for automatic grading of multiple choice exams is presented. While most current solutions are based on expensive scanners, Eyegrade offers a truly low-cost solution requiring only a regular off-the-shelf webcam. Additionally, Eyegrade performs both mark recognition as well as optical character recognition of handwritten student identification numbers, which avoids the use of bubbles in the answer sheet. When compared with similar webcam-based systems, the user interface in Eyegrade has been designed to provide a more efficient and error-free data collection procedure. The tool has been validated with a set of experiments that show the ease of use (both setup and operation), the reduction in grading time, and an increase in the reliability of the results when compared with conventional, more expensive systems.