The first step, fetch , involves retrieving an instruction (which is represented by a number or sequence of numbers) from program memory. The location in program memory is determined by a program counter (PC), which stores a number that identifies the current position in the program.

In the decode step, the instruction is broken up into parts that have significance to other portions of the CPU. The way in which the numerical instruction value is interpreted is defined by the CPU's instruction set architecture (ISA).[4] Often, one group of numbers in the instruction, called the opcode, indicates which operation to perform. The remaining parts of the number usually provide information required for that instruction, such as operands for an addition operation. Such operands may be given as a constant value (called an immediate value), or as a place to locate a value: a register or a memory address, as determined by some addressing mode.

During execution step, various portions of the CPU are connected so they can perform the desired operation. If, for instance, an addition operation was requested, an arithmetic logic unit (ALU) will be connected to a set of inputs and a set of outputs. The inputs provide the numbers to be added, and the outputs will contain the final sum. The ALU contains the circuitry to perform simple arithmetic and logical operations on the inputs (like addition and bitwise operations).

The final step, writeback, simply "writes back" the results of the execute step to some form of memory. Very often the results are written to some internal CPU register for quick access by subsequent instructions. In other cases results may be written to slower, but cheaper and larger, main memory. Some types of instructions manipulate the program counter rather than directly produce result data.