We present a numerical two-step reconstruction procedure for digital off-axis Fresnel holograms. First, we retrieve the amplitude and phase of the object wave in the CCD plane. For each point we solve a weighted linear set of equations in the least-squares sense. The algorithm has O(N) complexity and gives great flexibility. Second, we numerically propagate the obtained wave to achieve proper focus. We apply the method to microscopy and demonstrate its suitability for the real time imaging of biological samples.