The Banach fixed-point theorem (or contraction mapping principle) was already mentioned by Rodrigo A. Pérez, but I would like to stress another application. The principle says that a contraction of a complete metric space $(X,d)$ (namely, a continuous function $f:X\to X$ such that $d\big(f(x),f(y)\big)\leq \rho d(x,y)$ for each $x,y\in X$ where $\rho<1$ is some positive constant depending on $f$ only) has a unique fixed point.

In his milestone 1981 paper Fractals and Self Similarities, (Indiana Univ. Math. J., vol. 30, n. 5) J. Hutchinson axiomatized the relation between fractals and collections of contractions of $\mathbb{R}^n$. He showed that for each set $\mathscr{S}=\{S_1,\dots,S_N\}$ of contractions $S_i\colon\mathbb{R}^n\to\mathbb{R}^n$, there exists a unique closed, bounded set $K$ such that $$ K=\bigcup_{i=1}^N S_i(K)\;. $$ Such fixed closed sets are "fractals" in a very natural way. For instance, the Koch curve can be obtained in $\mathbb{R}^2$ by using two contractions (see p. 729 of Hutchinson's work), as well as the Cantor set - for this, take $\mathscr{S}=\{S_1,S_2\}$ with $$ S_1(x)=\frac{x}{3}\quad\text{and}\quad S_2(x)=\frac{x}{3}+\frac{2}{3}\;. $$ The three-line proof of the existence of $K$ is an application of the contraction mapping principle (and is Theorem 1 on p. 728 of Hutchinsons's work) and goes as follows: let, as before, $n\geq 1$ and $\mathscr{S}=\{S_1,\dots,S_N\}$ be contractions of $\mathbb{R}^n$. Let $\mathscr{B}$ be the set of all closed bounded subsets of $\mathbb{R}^n$ and, for two bounded closed $A,B\in\mathscr{B}$, let $\delta(A,B)=\sup \{d(a,B),d(b,A):a\in A,b\in B\}$. This turns $(\mathscr{B},\delta)$ into a complete metric space for which $$ \mathscr{S}:A\mapsto \bigcup _{i=1}^{N}S_i(A) $$ is a contraction. Hence, there is a unique fixed point $K\in\mathscr{B}$. Needless to say, one can replace $\mathbb{R}^n$ with any other complete metric space without affecting the proof.

The Banach fixed-point theorem (or contraction mapping principle) was already mentioned by Rodrigo A. Pérez, but I would like to stress another application. The principle says that a contraction of a complete metric space $(X,d)$ (namely, a continuous function $f:X\to X$ such that $d\big(f(x),f(y)\big)\leq \rho d(x,y)$ for each $x,y\in X$ where $\rho<1$ is some positive constant depending on $f$ only) has a unique fixed point.

In his milestone 1981 paper Fractals and Self Similarities, (Indiana Univ. Math. J., vol. 30, n. 5) J. Hutchinson axiomatized the relation between fractals and collections of contractions of $\mathbb{R}^n$. He showed that for each set $\mathscr{S}=\{S_1,\dots,S_N\}$ of contractions $S_i\colon\mathbb{R}^n\to\mathbb{R}^n$, there exists a unique closed, bounded set $K$ such that $$ K=\bigcup_{i=1}^N S_i(K)\;. $$ Such fixed closed sets are "fractals" in a very natural way. For instance, the Koch curve can be obtained in $\mathbb{R}^2$ by using two contractions (see p. 729 of Hutchinson's work), as well as the Cantor set - for this, take $\mathscr{S}=\{S_1,S_2\}$ with $$ S_1(x)=\frac{x}{3}\quad\text{and}\quad S_2(x)=\frac{x}{3}+\frac{2}{3}\;. $$ The three-line proof of the existence of $K$ is an application of the contraction mapping principle (and is Theorem 1 on p. 728 of Hutchinsons's work) and goes as follows: let, as before, $n\geq 1$ and $\mathscr{S}=\{S_1,\dots,S_N\}$ be contractions of $\mathbb{R}^n$. Let $\mathscr{B}$ be the set of all closed bounded subsets of $\mathbb{R}^n$ and, for two bounded closed $A,B\in\mathscr{B}$, let $\delta(A,B)=\sup \{d(a,B),d(b,A):a\in A,b\in B\}$. This turns $(\mathscr{B},\delta)$ into a complete metric space for which $$ \mathscr{S}:A\mapsto \bigcup _{i=1}^{N}S_i(A) $$ is a contraction. Hence, there is a unique fixed point $K\in\mathscr{B}$. Needless to say, one can replace $\mathbb{R}^n$ with any other complete metric space without affecting the proof.