A single memory element, which may consist of general purpose SRAM chips, is used to implement both tag and data cache memory functions, resulting in an efficient, low cost implementation of high speed external cache memory. In one embodiment, a bank of general purpose random access memory used by a microprocessor as an external cache memory stores both cache tags and cache data in separate memory locations. During a read operation, the microprocessor retrieves a cache tag from the bank of general purpose random access memory before retrieving corresponding cache data therefrom, and compares the cache tag to a memory address to assess whether requested data resides within the cache memory. The microprocessor preferably accesses the bank of general purpose random access memory using a memory mapping function which maps the memory address into a cache tag address and a cache data address.