The efficiency of a machine describes how much of the power put into the machine is turned into movement or force. A 100% efficient machine would turn all of the input power into output movement or force. However, no machine is 100% efficient due to friction, heat, wear and other imperfections that consume input power without delivering any output.

Mechanical advantage is a measure of the force amplification achieved by using a tool, mechanical device or machine system. Such a device utilizes input force and trades off forces against movement to amplify and/or change its direction.

Potential energy is the energy of an object by virtue of its position relative to other objects. It is energy that has the potential to be converted into kinetic energy.

Torque measures force applied during rotation: τ = rF. Torque (τ, the Greek letter tau) = the radius of the lever arm (r) multiplied by the force (F) applied. Radius is measured from the center of rotation or fulcrum to the point at which the perpendicular force is being applied. The resulting unit for torque is newton-meter (N-m) or foot-pound (ft-lb).

A wheel and axle uses two different diameter wheels mounted to a connecting axle. Force is applied to the larger wheel and large movements of this wheel result in small movements in the smaller wheel. Because a larger movement distance is being translated to a smaller distance, force is increased with a mechanical advantage equal to the ratio of the diameters of the wheels. An example of a wheel and axle is the steering wheel of a car.