Computational physics is the study and implementation of numerical analysis to solve problems in physics for which a quantitative theory already exists. Historically, computational physics was the first application of modern computers in science, and is now a subset of computational science.
It is sometimes regarded as a subdiscipline (or offshoot) of theoretical physics, but others consider it an intermediate branch between theoretical and experimental physics, a third way that supplements theory and experiment.
In physics, different theories based on mathematical models provide very precise predictions on how systems behave. Unfortunately, it is often the case that solving the mathematical model for a particular system in order to produce a useful prediction is not feasible. This can occur, for instance, when the solution does not have a closed-form expression, or is too complicated. In such cases, numerical approximations are required. Computational physics is the subject that deals with these numerical approximations: the approximation of the solution is written as a finite (and typically large) number of simple mathematical operations (algorithm), and a computer is used to perform these operations and compute an approximated solution and respective error.
There is a debate about the status of computation within the scientific method.
Sometimes it is regarded as more akin to theoretical physics; some others regard computer simulation as "computer experiments", yet still others consider it an intermediate or different branch between theoretical and experimental physics, a third way that supplements theory and experiment. While computers can be used in experiments for the measurement and recording (and storage) of data, this clearly does not constitute a computational approach.
Physics problems are in general very difficult to solve exactly. This is due to several (mathematical) reasons: lack of algebraic and/or analytic solubility, complexity, and chaos.
For example, - even apparently simple problems, such as calculating the wavefunction of an electron orbiting an atom in a strong electric field (Stark effect), may require great effort to formulate a practical algorithm (if one can be found); other cruder or brute-force techniques, such as graphical methods or root finding, may be required. On the more advanced side, mathematical perturbation theory is also sometimes used (a working is shown for this particular example here).