In thermodynamics, the thermal efficiency (${\displaystyle \eta _{\rm {th}}}$) is a dimensionless performance measure of a device that uses thermal energy, such as an internal combustion engine, steam turbine, steam engine, boiler, furnace, refrigerator, ACs etc.

For a heat engine, thermal efficiency is the ratio of the net work output to the heat input; in the case of a heat pump, thermal efficiency (known as the coefficient of performance) is the ratio of net heat output (for heating), or the net heat removed (for cooling) to the energy input (external work). The efficiency of a heat engine is fractional as the output is always less than the input while the COP of a heat pump is more than 1. These values are further restricted by the Carnot theorem.