AbstractA new unified theory underlying the theoretical design of linear computational algorithms in the context of time dependent first‐order systems is presented. Providing for the first time new perspectives and fresh ideas, and unlike various formulations existing in the literature, the present unified theory involves the following considerations: (i) it leads to new avenues for designing new computational algorithms to foster the notion of algorithms by design and recovering existing algorithms in the literature, (ii) describes a theory for the evolution of time operators via a unified mathematical framework, and (iii) places into context and explains/contrasts future new developments including existing designs and the various relationships among the different classes of algorithms in the literature such as linear multi‐step methods, sub‐stepping methods, Runge–Kutta type methods, higher‐order time accurate methods, etc. Subsequently, it provides design criteria and guidelines for contrasting and evaluating time dependent computational algorithms. The linear computational algorithms in the context of first‐order systems are classified as distinctly pertaining to Type 1, Type 2, and Type 3 classifications of time discretized operators. Such a distinct classification, provides for the first time, new avenues for designing new computational algorithms not existing in the literature and recovering existing algorithms of arbitrary order of time accuracy including an overall assessment of their stability and other algorithmic attributes. Consequently, it enables the evaluation and provides the relationships of computational algorithms for time dependent problems via a standardized measure based on computational effort and memory usage in terms of the resulting number of equation systems and the corresponding number of system solves. A generalized stability and accuracy limitation barrier theorem underlies the generic designs of computational algorithms with arbitrary order of accuracy and establishes guidelines which cannot be circumvented. In summary, unlike the traditional approaches and classical school of thought customarily employed in the theoretical development of computational algorithms, the unified theory underlying time dependent first‐order systems serves as a viable avenue to foster the notion of algorithms by design. Copyright © 2004 John Wiley & Sons, Ltd.