We present a new digital two-step reconstruction method for off-axis holograms recorded on a CCD camera. First, we retrieve the complex object wave in the acquisition plane from the hologram's samples. In a second step, if required, we propagate the wave front by using a digital Fresnel transform to achieve proper focus. This algorithm is sufficiently general to be applied to sophisticated optical setups that include a microscope objective. We characterize and evaluate the algorithm by using simulated data sets and demonstrate its applicability to real-world experimental conditions by reconstructing optically acquired holograms.