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What is the difference between CFM (FAD) and CFM (Displacement)?

The between CFM (FAD) and CFM (Displacement) is typically 2 thirds.

For example if your compressor or tool says 10 CFM (Displacement/Theoretical) then the CFM in reality will be about 6.5 CFM (FAD)

(10 divided by 3) x 2. I hope that helps!