Efficiency is the extent to which time, effort, or cost is well-used for the intended task or purpose. It often comprises specifically the capability of a specific application of effort to produce a specific outcome effectively with a minimum amount or quantity of waste, expense, or unnecessary effort. "Efficiency" has widely varying meanings in different disciplines.

The term "efficient" is very much confused and misused instead of the term "effective". In general, efficiency is a measurable concept, quantitatively determined by the ratio of output to input. "Effectiveness", is a relatively vague, non-quantitative concept, mainly concerned with achieving objectives. In several of these cases, efficiency can be expressed as a result as percentage of what ideally could be expected, hence with 100% as ideal case. This does not always apply, not even in all cases where efficiency can be assigned a numerical value, e.g. not for specific impulse.