diff --git a/firmware/demo/README.md b/firmware/demo/README.md
new file mode 100644
index 0000000..b218444
--- /dev/null
+++ b/firmware/demo/README.md
@@ -0,0 +1,46 @@
+Running the Demo
+================
+
+Compiling
+---------
+To compile this example you will need make, avrgcc avr-binutils and the avrlibc.
+If you are reading this I assume you already have an avr toolchain in place.
+Also you'll need avrdude to flash your avr.
+
+The makefile takes 3 optional parameters:
+ * **F_CPU** Clock speed of your controller in Hertz (default: 16000000)
+ * **AVRMCU** The name of your microcontroller, currently only atmega8 and atmega32p are supported (default: atemga8)
+ * **ISPPORT** The serial interface for `make flash` (default: /dev/ttyACM0)
+
+ To compile and flash the code run (assuming there is a serial bootloader like optiboot present on your controller):
+ ```
+ make
+ make flash
+ ```
+
+ If you want to run the code on your Arduino try:
+ ```
+ make AVRMCU=atmega32p
+ make AVRMCU=atmega32p flash
+ ```
+
+Afterwards connect the encoder and start a terminal emulator of your choice on your serial interface.
+If you start sending newlines to the microcontroller, you should see it respond with measurements in plain ASCII.
+
+You can also run cube_demo.py on this interface if you have PyOpengl and PySerial installed.
+It might be necessary to change the SERIAL constant on line 16 to the correct interface.
+
+Connecting the encoder
+----------------------
+
+Simply onnect the encoder according to the following table:
+
+| AS5043 | AVR        | Arduino        |
+|--------|------------|----------------|
+| PROG   | GND        | GND            |
+| DO     | PB4 (MISO) | digital pin 12 |
+| CLK    | PB5 (SCK)  | digital pin 13 |
+| CS     | PB2 (SS)   | digital pin 10 |
+| MODE   | GND        | GND            |
+| VDD5V  | +5v        | +5v            |
+| VSS    | GND        | GND            |
diff --git a/firmware/demo/cube_demo.py b/firmware/demo/cube_demo.py
index b917ea9..ce0e5ff 100644
--- a/firmware/demo/cube_demo.py
+++ b/firmware/demo/cube_demo.py
@@ -13,6 +13,7 @@ ERROR: PyOpenGL not installed properly.
 
 import serial
 
+SERIAL = '/dev/ttyUSB0'
 
 angle = 0
 pos = 0
@@ -53,7 +54,7 @@ def idle():
    while len(line) == 0:
      ser.write("a")
      line = ser.readline()
-     
+
    angle = int(line[:-2])
    print "angle: %d" % angle
 
@@ -63,7 +64,7 @@ def idle():
 
 
 
-ser = serial.Serial('/dev/ttyUSB0', 9600, timeout=0.032)
+ser = serial.Serial(SERIAL, 9600, timeout=0.032)
 if not ser:
   print "Unable to open serial port"
   sys.exit(1)