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Typing tests define a word as five characters, so gross words per minute is characters divided by five over minutes. Errors are then deducted one word each: 1450 characters in five minutes with eighteen errors gives 58 gross but 54.4 net at 93.8% accuracy. Accuracy matters more than raw speed, since correcting errors costs more time than typing carefully.
Gross speed
gross wpm = (characters / 5) / minutes
Net speed
net wpm = (characters / 5 - errors) / minutes
It is the standard convention including the space, chosen so that tests are comparable regardless of the words used.
About 40 wpm is average, 60-70 is fast, and professional transcriptionists work at 80-100 wpm with high accuracy.