The basic equation used by both is:
HP = (Torque x RPM) / 5252
A load dyno measures torque at the rollers, roller RPM and plugs them into the equation above to calculate BHP. If it knows engine RPM, it can then take the BHP reading and calculate engine torque as below.
An inertial dyno measures HP as a function of the rate of acceleration of the dyno rollers of a known rotational inertia. It then calculates torque (if, in the case of the Dynojet, it knows engine RPM) by using the formula:
Torque = (5252 x BHP) / RPM
The 5252 is 33,000 lb-ft/minute (the definition of 1 HP) divided by 2 x pi radians in order to convert from a linear to a rotational measurement frame of reference.
Rusty