A small memory cache close to the CPU can be accessed quickly, but cannot hold the entire useful data set. Increasing its capacity usually increases lookup, wiring and energy costs. A cache hierarchy combines a small fast first level with progressively larger levels that reduce the number of accesses reaching slow main computer memory.
In a simple serial two-level timing model, let be the first-level lookup time, its cache miss rate, the additional second-level lookup time, the second level's local cache miss rate conditional on a first-level miss, and the remaining main-memory cost. Then
This average memory access time combines the common fast path with a rarer large-capacity path. Several levels balance hit latency, capacity, cost and traffic; making one cache very large does not preserve a tiny first-level hit time. Temporal locality and spatial locality make this arrangement useful.

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