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Transactions Per Second (TPS)

Definition - What does Transactions Per Second (TPS) mean?

Transactions per second (TPS) is a computer software and hardware measurement that represents the number of transactions completed in one second by an information system.

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Techopedia explains Transactions Per Second (TPS)

An information system that manipulates business transaction data must have a reliable metric to measure and quantify performance. The transactions per second measurement is used to calculate the performance of systems that handle routine transactions and record-keeping.

TPS can be calculated with the formula:

T ÷ S = TPS

Where:
T = Number of transactions
S = Number of seconds
TPS = Transactions per second

The transactions per second measurement is used by varied organizational departments, including sales, payroll, inventory, shipping and personnel management.

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