Efficiency Rate is a measure of how well resources are used to generate desired outputs. It looks at the ratio of inputs to outputs or effort versus results. The calculation can be made across any business function and is sometimes used in calculations related to cost, quality, performance, or other objectives. A high Efficiency Rate means that the process or product has the potential to maximize output with minimal resources or effort. Ultimately, efficient processes yield lower costs, improved customer satisfaction, and competitive advantages over competitors.