What Does algorithm Mean? The current term of choice for a problem-solving procedure , algorithm, is commonly used nowadays for the set of rules a machine (and especially a computer) follows to achieve a particular goal. An algorithm must be clear and precise, meaning that every step should be well-defined and unambiguous. If an algorithm is difficult to understand or interpret, it may lead to incorrect outputs. Algorithm, systematic procedure that produces—in a finite number of steps—the answer to a question or the solution of a problem . The name derives from the Latin translation, Algoritmi de numero Indorum, of a treatise by the 9th-century mathematician al-Khwarizmi. An algorithm is a set of instructions used to perform tasks or solve problems. Techopedia explains the meaning of algorithm as a term in computing and beyond.