Generally, an algorithm is any well-defined computational procedure that takes some value, or set of values, as input and produces some value, or set of values, as output. An algorithm is thus a sequence of computational steps that transform the input into the output.
Shortly we can say that, an algorithm is a detailed series of instructions for carrying out an operation or solving a problem.
Algorithm is everything. Algorithms give the programmer the power to implement efficient, reliable, and fast code in a shorter amount of time.
In real life by intentionally or unintentionally we are using algorithms. Suppose you find the fastest way to go to a place or efficient way to bake a cake or solving rubik's cube in all the way we use algorithm.
We can say that Algorithms + Data Structures = Programs