What is Displacement?
Displacement is the total volume swept by all of an engine's pistons during one full stroke, expressed in liters or cubic centimeters/cubic inches, and used as a rough gauge of an engine's potential output.
Displacement is the combined volume that all of an engine's pistons sweep through as they travel from the bottom of the cylinder to the top, once for every cylinder in the engine. It is calculated by multiplying the cross-sectional area of one cylinder, based on bore diameter, by the stroke length, then multiplying that figure by the number of cylinders. The result is expressed in liters or cubic centimeters in most of the world, and in cubic inches in older American convention, so a 5.7-liter V8 and a 350 cubic inch V8 can describe the same physical engine.
Two engines can share an identical displacement figure while feeling completely different to drive, because the same total volume can be built from many bore-and-stroke combinations. A short-stroke, large-bore layout tends to rev freely and favors high-RPM power, while a long-stroke, small-bore layout tends to build torque lower in the rev range but rev less eagerly. Cylinder count also matters: a 3.0-liter inline-six and a 3.0-liter V6 have identical displacement but different smoothness, packaging, and breathing characteristics because of how that volume is divided.
Displacement correlates loosely with power and torque because more swept volume generally means more air and fuel can be burned per cycle, but it is only one variable among many. Forced induction, valve timing, compression ratio, redline, and combustion efficiency all shift how much power a given displacement produces. The industry's shift toward smaller turbocharged engines exists precisely because forced induction lets a smaller-displacement engine match or beat the output of a larger naturally aspirated one while using less fuel at light throttle.
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Displacement on the blog
Nissan's RB26DETT and Toyota's 2JZ-GTE are both turbocharged inline-sixes rated at 276 hp in Japan. The RB26 is smaller and built to rev, while the 2JZ has more displacement, more torque, and a reputation for taking huge power.

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The 1JZ and 2JZ are both Toyota inline-six engines from the same family, and people use the names like they are interchangeable. They are not. The 1JZ is a 2.5-liter that loves to rev. The 2JZ is a 3.0-liter that became famous for surviving four-figure horsepower on stock parts. Which one you want depends entirely on what you are building.