An improved sectored cache replacement algorithm is implemented via a method and computer program product. The method and computer program product select a cache sector among a plurality of cache sectors for replacement in a computer system. The method may comprise selecting a cache sector to be replaced that is not the most recently used and that has the least amount of modified data. In the case in which there is a tie among cache sectors, the sector to be replaced may be the sector among such cache sectors with the least amount of valid data. In the case in which there is still a tie among cache sectors, the sector to be replaced may be randomly selected among such cache sectors. Unlike conventional sectored cache replacement algorithms, the improved algorithm implemented by the method and computer program product accounts for both hit rate and bus utilization.