NOTE: Improved example here: https://w2davids.wordpress.com/android-listview-with-seekbar-and-button-countdowntimer/

Android comes with a built-in class for constructing CountDownTimers. Its easy to use, efficient and works..(that goes without saying!).

1. Create a subclass of CountDownTimer.
2. Override the onTick() and onFinish() methods.
3. Instantiate a new instance in your Android Activity,
4. Call the start() method on the new instance created!

Download: http://www.filefactory.com/file/cbbbc38/n/SimpleCountDownTimerExample.zip

File: main.xml

<?xml version="1.0" encoding="utf-8"?>
<LinearLayout
	xmlns:android="http://schemas.android.com/apk/res/android"
	android:orientation="vertical"
	android:layout_width="fill_parent"
	android:layout_height="fill_parent">
	<Button
		android:id="@+id/button"
		android:text="Start"
		android:layout_width="fill_parent"
		android:layout_height="wrap_content" />
	<TableLayout
		android:padding="10dip"
		android:layout_gravity="center"
		android:layout_width="fill_parent"
		android:layout_height="wrap_content">
		<TableRow>
			<TextView
				android:id="@+id/timer"
				android:text="Time: "
				android:paddingRight="10dip"
				android:layout_width="wrap_content"
				android:layout_height="wrap_content" />

			<TextView
				android:id="@+id/timeElapsed"
				android:text="Time elapsed: "
				android:paddingRight="10dip"
				android:layout_width="wrap_content"
				android:layout_height="wrap_content" />
		</TableRow>
	</TableLayout>
</LinearLayout>

File: Main.java

package com.examples;

import android.app.Activity;
import android.os.Bundle;
import android.os.CountDownTimer;
import android.view.View;
import android.view.View.OnClickListener;
import android.widget.Button;
import android.widget.TextView;

public class Main extends Activity implements OnClickListener
	{
		private static final String tag = "Main";
		private MalibuCountDownTimer countDownTimer;
		private long timeElapsed;
		private boolean timerHasStarted = false;
		private Button startB;
		private TextView text;
		private TextView timeElapsedView;

		private final long startTime = 50000;
		private final long interval = 1000;

		/** Called when the activity is first created. */
		@Override
		public void onCreate(Bundle savedInstanceState)
			{
				super.onCreate(savedInstanceState);
				setContentView(R.layout.main);
				startB = (Button) this.findViewById(R.id.button);
				startB.setOnClickListener(this);

				text = (TextView) this.findViewById(R.id.timer);
				timeElapsedView = (TextView) this.findViewById(R.id.timeElapsed);
				countDownTimer = new MalibuCountDownTimer(startTime, interval);
				text.setText(text.getText() + String.valueOf(startTime));
			}

		@Override
		public void onClick(View v)
			{
				if (!timerHasStarted)
					{
						countDownTimer.start();
						timerHasStarted = true;
						startB.setText("Start");
					}
				else
					{

						countDownTimer.cancel();
						timerHasStarted = false;
						startB.setText("RESET");
					}
			}

		// CountDownTimer class
		public class MalibuCountDownTimer extends CountDownTimer
			{

				public MalibuCountDownTimer(long startTime, long interval)
					{
						super(startTime, interval);
					}

				@Override
				public void onFinish()
					{
						text.setText("Time's up!");
						timeElapsedView.setText("Time Elapsed: " + String.valueOf(startTime));
					}

				@Override
				public void onTick(long millisUntilFinished)
					{
						text.setText("Time remain:" + millisUntilFinished);
						timeElapsed = startTime - millisUntilFinished;
						timeElapsedView.setText("Time Elapsed: " + String.valueOf(timeElapsed));
					}
			}
	}