Embedded system design complexities are growing exponentially. Demand has increased for modeling techniques that can provide both accurate measurements of delay and fast simulation speed for use in design space exploration. Previous efforts have enabled designers to estimate performance with Transaction Level Modeling (TLM) of software processors but this technique typically does not account for the effect of memory latencies. Modeling latency effects of a cache can greatly increase accuracy of the simulation and assist designers in choosing appropriate algorithms. In this article, we show the implementation of a cache model and its integration into a processor TLM. We demonstrate a method for extracting information about memory accesses from the final binary and abstracting them into cache model accesses. Our methodology is tested on a common embedded processor application with two algorithms exhibiting different cache behaviors. Our experiments show that the cache model can achieve results comparable to a cycle-accurate ISS, but with very little overhead compared to native, host-compiled code execution.