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No cyclic heat engine exchanging heat only with two fixed thermal reservoirs at positive absolute temperatures $T_h>T_c$ can exceed the thermal efficiency of an engine whose cycle is a reversible thermodynamic process between them. All such reversible engines have the same thermal efficiency, regardless of their working substance. Let $Q_h>0$ be heat absorbed from the hot thermal reservoir and $Q_c>0$ the magnitude rejected to the cold one. ThenThe work convention is the one in the first law of thermodynamics: $W>0$ is net output by the engine. Use absolute thermodynamic temperatures, such as values in kelvin; ratios of readings in degree Celsius are invalid because their zero is shifted.

For $T_h=600\mathrm{K}$, $T_c=300\mathrm{K}$ and $Q_h=1000\mathrm{J}$, the maximum thermal efficiency is $50\%$. A reversible engine delivers $W=500\mathrm{J}$ and rejects $Q_c=500\mathrm{J}$. The thermal reservoirs have entropy changes $-1000/600$ and $+500/300\mathrm{J}{\mathrm{K}}^{-1}$, which cancel. The engine's own entropy change is zero over its thermodynamic cycle.

A short derivation now becomes transparent: the Second law of thermodynamics gives $-Q_h/T_h+Q_c/T_c\ge 0$, and the first law of thermodynamics gives $W=Q_h-Q_c$. Together they yield the bound and, more precisely,At fixed $Q_h,T_h,T_c$, every extra unit of total entropy production reduces output by $T_c$ units of energy. ^[ref]

Fixed thermal reservoirs are essential. Finite bodies cool and warm, so their initial temperature ratio cannot be used throughout an entire extraction process. As a computed contrast, the bodies with equal constant heat capacity in the entropy example would reach $T_f=\sqrt{600\times 300}=424.26\mathrm{K}$ if a reversible engine extracted work until their temperatures matched. Zero total entropy change gives this geometric mean; the first law of thermodynamics then gives $W_{\max }=C(600+300-2T_f)=5147.19\mathrm{J}$. Direct contact reaches $450\mathrm{K}$ and extracts no work.

Carnot's 1824 book asked whether the useful output of machines driven by heat was fundamentally limited and whether changing the working substance could improve that limit. Its reversible comparisons are the historical setting of Carnot's theorem. Carnot used the then-current caloric picture, treating heat as conserved in its passage through an engine; the modern balance $Q_h-Q_c=W$ should not be read back into that text.^[ref]

A heat engine uses a repeating thermodynamic cycle to turn part of an incoming heat transfer into net outgoing work. In the two-thermal reservoir model, the hot thermal reservoir supplies heat $Q_h>0$ at fixed temperature $T_h$, and the cold thermal reservoir receives heat of magnitude $Q_c>0$ at fixed temperature $T_c<T_h$. A Stirling engine makes the repeated motion visible; the abstract energy budget applies independently of its particular mechanism.^[ref]

Choose the entire cyclic device as a closed system, with no net change in bulk kinetic energy or potential energy. Count heat entering as positive and net work delivered as positive, as in the first law of thermodynamics. Thus $Q_h$ enters with a plus sign and $Q_c$, although a positive magnitude, enters with a minus sign. Assume these two heat transfers and the net work are the only transfers across the boundary. Over one complete thermodynamic cycle, all stored energy, including internal energy $U$, returns to its starting value:The device does not accumulate heat from cycle to cycle. More precisely, heat is a transfer, while internal energy is what can be stored; even a component that temporarily stores internal energy must return to its initial state for this boundary to be cyclic.^[ref]

For engine operation, $Q_h>Q_c$ and $W>0$. Its thermal efficiency isUse net work, after subtracting any work supplied during compression or required by auxiliaries included in the chosen device. For periodic operation, average power satisfies $P_{\mathrm{out}}={\dot{Q}}_h-{\dot{Q}}_c$ and $\eta =P_{\mathrm{out}}/{\dot{Q}}_h$, with the rates averaged over complete thermodynamic cycles.^[ref]

For a stipulated model at $T_h=600\mathrm{K}$ and $T_c=300\mathrm{K}$, let $Q_h=1000\mathrm{J}$ and $Q_c=600\mathrm{J}$ per thermodynamic cycle. Then $W=400\mathrm{J}$ and $\eta =2/5=40\%$. At two thermodynamic cycles per second, these become $2000\mathrm{W}$ incoming heat transfer, $1200\mathrm{W}$ outgoing heat transfer, and $800\mathrm{W}$ net power. These are constructed values, not measurements.

Different signs describe different tasks. With the same directions of heat transfer, $Q_h=Q_c$ gives $W=0$: a device transmitting heat without net work output. If $Q_c>Q_h$, net work is supplied to that device. A refrigerator or heat pump instead extracts heat from the cold side and delivers heat to the hot side, using positive input work $W_{\mathrm{in}}$ and the balance $Q_h=Q_c+W_{\mathrm{in}}$. Their useful output is heat transfer, measured by a coefficient of performance. Finally, a one-time isothermal expansion can have $Q=W$ and $\Delta U=0$ while leaving the volume changed: it is not a complete thermodynamic cycle. A warming device also fails the cyclic assumption, and a fuel-consuming device requires an accounting of matter crossing its boundary.

For two fixed thermal reservoirs at positive thermodynamic temperatures, the Second law of thermodynamics strengthens the energy balance toEquality requires the overall operation to be a reversible thermodynamic process, including its heat transfer to the thermal reservoirs. The Carnot cycle explains how the reversible benchmark is constructed, and Carnot's theorem explains its universality and the entropy production penalty. Use kelvin values, never ratios of degree Celsius readings. The example above lies below the $50\%$ bound: its total entropy production is $-1000/600+600/300=1/3\mathrm{J}{\mathrm{K}}^{-1}$ per thermodynamic cycle.

This is useful before building a machine: warmer cooling surroundings reduce the possible thermal efficiency, even if the mechanism is unchanged. A small observed thermal efficiency does not by itself test the Second law of thermodynamics; heat leaks, friction, incomplete recovery of work, and the measurement boundary can all reduce the reported ratio. A meaningful comparison requires the actual thermal reservoir temperatures, matched heat and net work measurements, and the hypotheses of Carnot's theorem. Finite bodies whose temperatures change are treated separately there.

The practical question already appears in the 1824 Réflexions sur la puissance motrice du feu et sur les machines propres à développer cette puissance by Sadi Carnot: pp. 6–8 ask whether machines driven by heat have a fundamental limit and whether changing the working substance can improve their output. Pages 9–11 describe heating and cooling in real machines, but use the historical caloric theory, rather than the modern first law of thermodynamics balance. The historical discussion under Carnot's theorem explains that distinction.