A thermodynamic cycle consists of linked sequences of thermodynamic processes that involve transfer of heat and work into and out of the system, while varying pressure, temperature, and other state variables within the system, and that eventually returns the system to its initial state. In the process of passing through a cycle, the working fluid (system) may convert heat from a warm source into useful work, and dispose of the remaining heat to a cold sink, thereby acting as a heat engine. Conversely, the cycle may be reversed and use work to move heat from a cold source and transfer it to a warm sink thereby acting as a heat pump. If at every point in the cycle the system is in thermodynamic equilibrium, the cycle is reversible. Whether carried out reversible or irreversibly, the net entropy change of the system is zero, as entropy is a state function.

During a closed cycle, the system returns to its original thermodynamic state of temperature and pressure. Process quantities (or path quantities), such as heat and work are process dependent. For a cycle for which the system returns to its initial state the first law of thermodynamics applies:

${\displaystyle \Delta U=E_{in}-E_{out}=0}$

The above states that there is no change of the internal energy (${\displaystyle U}$) of the system over the cycle. ${\displaystyle E_{in}}$ represents the total work and heat input during the cycle and ${\displaystyle E_{out}}$ would be the total work and heat output during the cycle. The repeating nature of the process path allows for continuous operation, making the cycle an important concept in thermodynamics. Thermodynamic cycles are often represented mathematically as quasistatic processes in the modeling of the workings of an actual device.