Horsepower at the output shaft of an engine, turbine, or motor is termed brake horsepower or shaft horsepower, depending on what kind of instrument is used to measure it.
It is the measure of an engine's horsepower before the loss in power caused by the gearbox and drive train etc.
In Europe the DIN standard tested the engine fitted with all ancillaries and exhaust system as used in the car. The American SAE system tests without alternator, water pump, and other auxiliary components such as power steering pump, muffled exhaust system, etc. so the figures are higher than the European figures for the same engine. Brake refers to the device which was used to load an engine and hold it at a desired rotational speed. During testing, the output torque and rotational speed were measured to determine the brake horsepower. Horsepower was originally measured and calculated by use of the "indicator diagram" (a James Watt invention of the late 18th century), and later by means of a de Prony brake connected to the engine's output shaft.
More recently, an electrical brake dynamometer is used instead of a De Prony brake. Although the output delivered to the driving wheels is less than that obtainable at the engine's crankshaft, a chassis dynamometer gives an indication of an engine's "real world" horsepower after losses in the drive train and gearbox.