The efficiency of a system in electronics and electrical engineering is defined as useful power output divided by the total electrical power consumed (a fractional expression), typically denoted by the Greek small letter eta (η – ήτα). If energy output and input are expressed in the same units, efficiency is a dimensionless number. Where it is not customary or convenient to represent input and output energy in the same units, efficiency-like quantities have units associated with them. For example, the heat rate of a fossil fuel power plant may be expressed in BTU per kilowatt-hour. Luminous efficacy of a light source expresses the amount of visible light for a certain amount of power transfer and has the units of lumens per watt. Efficiency should not be confused with effectiveness: a system that wastes most of its input power but produces exactly what it is meant to is effective but not efficient. The term "efficiency" makes sense only in reference to the wanted effect. A light bulb, for example, might have 2% efficiency at emitting light yet still be 98% efficient at heating a room (In practice it is nearly 100% efficient at heating a room because the light energy will also be converted to heat eventually, apart from the small fraction that leaves through the windows). An electronic amplifier that delivers 10 watts of power to its load (e.g., a loudspeaker), while drawing 20 watts of power from a power source is 50% efficient. (10/20 × 100 = 50%) Electric kettle: more than 90% (comparatively little heat energy is lost during the 2 to 3 minutes a kettle takes to boil water). A premium efficiency electric motor: more than 90% (see Main Article: Premium efficiency). A large power transformer used in the electrical grid may have efficiency of more than 99%. Early 19th century transformers were much less efficient, wasting up to a third of the energy passing through them. A steam power plant used to generate electricity may have 30-40% efficiency. As a result of the maximum power theorem, devices transfer maximum power to a load when running at 50% electrical efficiency.

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In thermodynamics, the thermal efficiency () is a dimensionless performance measure of a device that uses thermal energy, such as an internal combustion engine, steam turbine, steam engine, boiler, furnace, refrigerator, ACs etc. For a heat engine, thermal efficiency is the ratio of the net work output to the heat input; in the case of a heat pump, thermal efficiency (known as the coefficient of performance) is the ratio of net heat output (for heating), or the net heat removed (for cooling) to the energy input (external work).
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Efficiency is the often measurable ability to avoid wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. In more mathematical or scientific terms, it signifies the level of performance that uses the least amount of inputs to achieve the highest amount of output. It often specifically comprises the capability of a specific application of effort to produce a specific outcome with a minimum amount or quantity of waste, expense, or unnecessary effort.
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