What is an algorithm? Simple Explanation and Real-Life Example

🧑‍💻 By quescol • 📝 Updated on: 17 July 2025

Algorithms can be defined as the set of instructions structured to solve a problem. It is a step-by-step procedure to solve the problem. These steps are generally written in English to understand them easily and later convert them into computer programs. These steps together are called algorithms.

Let us consider an example, suppose you went shopping and want to know the amount you spent. So, you take out the shopping list and start adding the prices to your calculator. The same work can be done by designing an algorithm that adds your total amount.

What is an Algorithm?

An algorithm is a step-by-step procedure or a set of instructions that helps solve a specific problem or perform a particular task.

In simpler words, an algorithm tells the computer what to do and in what order to do it, just like a recipe in a cookbook tells a chef how to make a dish.

Key Features of an Algorithm

Here are some important properties that define a good algorithm:

• 🔢 Finiteness: It must end after a certain number of steps.
• 🎯 Definiteness: Every step must be clear and unambiguous.
• 📥 Input: It should accept zero or more inputs.
• 📤 Output: It must produce at least one output.
• ⚡ Effectiveness: Each instruction should be basic and doable.

Real-Life Example of an Algorithm – Total Shopping Amount

Let’s take a real-world example to understand this better.

Imagine you went shopping and bought several items: milk, rice, and potatoes. Now, you want to calculate the total amount you spent.

You could simply take a calculator and start adding each item’s price. But this is exactly what an algorithm does — it follows a sequence of steps to get to the result.

🧠 Problem:

You want to find out the total amount spent during shopping.

Algorithm to Calculate Total Price:

Here is a simple algorithm to solve this problem:

📋 Algorithm: Calculate Total Shopping Amount

1. Start
2. Assign a variable to each item (item1, item2, item3, ...)
3. Create a variable “total” which will store the total price.
4. Add all the item prices and store the result in “total”.
5. Display the value of “total”.
6. Stop

How is This Algorithm Used in Programming?

Once you write down an algorithm in simple English (like the example above), a programmer can then convert it into a programming language like C, Java, or Python.

For example, in C language, the algorithm might be implemented like this:

#include 
int main() {
    int milk, rice, potato, totalPrice;

    printf("Enter the price of milk:\n");
    scanf("%d", &milk);

    printf("Enter the price of rice:\n");
    scanf("%d", &rice);

    printf("Enter the price of potato:\n");
    scanf("%d", &potato);

    totalPrice = milk + rice + potato;

    printf("Total Price = %d\n", totalPrice);

    return 0;
}

Output

Enter the price of milk:
43
Enter the price of rice:
52
Enter the price of potato:
33
Total Price = 128

Why Are Algorithms Important?

Algorithms are the foundation of computer programming. Here’s why they matter:

• 🚀 They help break down big problems into small, solvable steps.
• 💡 They help in thinking logically and systematically.
• 🤖 They are used in every software — from a calculator app to a space rocket program.
• 📈 They are essential in data processing, artificial intelligence, and machine learning.

Algorithms in Daily Life

Even outside of coding, we follow algorithms every day:

• 👟 Getting ready in the morning (wake up → brush → shower → breakfast → go to school/work)
• 🧁 Baking a cake (gather ingredients → mix → bake → cool → serve)
• 📱 Unlocking your phone (press power button → swipe up → enter passcode)

So, algorithms are not just for computers — they’re a part of your daily life too!

Conclusion

To sum it up, an algorithm is like a recipe for solving problems. It tells the computer (or even a human) what steps to follow to reach the final goal. Whether you’re calculating the total price of shopping items or designing a complex mobile app — algorithms are everywhere.

By understanding and creating algorithms, you learn how to think logically, solve problems efficiently, and build the foundation of programming.

Frequently Asked Questions (FAQs)

❓ What is an algorithm in simple terms?

An algorithm is a list of steps that are followed to solve a problem or complete a task.

❓ Is an algorithm always written in code?

No, algorithms are first written in plain English or pseudocode. They are later converted into actual programming code.

❓ Can children understand algorithms?

Absolutely! With real-life examples like shopping or making noodles, algorithms can be made fun and simple for kids to learn.