Information processing can be measured in terms of speed. The data rate is the amount of data being processed per second, measured in bits/sec. Similarly, the bit rate is the amount of bits being processed per second. While these definitions may seem redundant, the bit rate is larger than or equal to the data rate, since not all of the bits in a packet of information carry data (some are used for communication).

Baud is a symbol or “unit” of data. Bauds can be comprised of multiple bits. The exact definition of a baud can vary depending on the context. Sometimes a baud can be one bit, another time it can be five bits or any other length. One way to think of one baud is as one “set” of data, and this set of data can be, however, many bits long.

The number of bauds being processed per second is called the baud rate. Since bauds are comprised of bits, the bitrate is always larger than or equal to the baudrate. The bitrate can be expressed as an integer multiple of the baudrate. If a baud is four bits long, then the bitrate is quadruple the baudrate.