SPICE simulators perform calculations by reading input elements and creating a matrix that connects the nodes of the circuit. They utilize modified nodal analysis to set up a system of equations, incorporating linear and nonlinear elements through Jacobian stamping. For linear systems, they typically apply LU decomposition or iterative methods, while dynamical systems are solved using the trapezoidal rule. Nonlinear systems are addressed with Newton's method to generate linearized versions for solving. Understanding these internal processes reveals the complexity behind SPICE's functionality, despite its conceptual simplicity.