Transactions Per Second (TPS)

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.

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.