Price/performance ratio

In economics and engineering, the price/performance ratio refers to a product's ability to deliver performance, of any sort, for its price. For instance, if a particular task requires 200 horsepower in total, a 100hp engine that costs $50 has a better price/performance ratio than a 200hp engine that costs $105.

The term tends to be used quite a bit when comparing computer hardware. During the latter 1990s, the price/performance ratios of midrange and large mainframe systems fell tremendously in comparison to a number of smaller microcomputers handling the same load. Many companies were forced out of the industry as this happened, including DEC, Data General and many multiprocessor vendors such as Sequent Computer Systems and Pyramid Technology.