A megabit is a unit of information or computer storage, abbreviated Mbit (or Mb).
1 megabit = 106 = 1,000,000 bits which is equal to 125,000 bytes. In kilobytes this is either 125 kB (decimal meaning) or about 122 kB (122 KiB) (binary meaning).
The megabit is most commonly used when referring to data transfer rates in network speeds, e.g. a 100 Mbit/s (megabit per second) Fast Ethernet connection. In this context, like elsewhere in telecommunications, it always equals 106 bits. Residential high speed internet access is often advertised incorrectly in megabits (a unit of information) rather than megabit per second.
A binary counterpart of the megabit, the mebibit, refers to the binary quantity 10242 bits. Standard industry practice in RAM and ROM manufacture is to use the Mb abbreviation in reference to this binary quantity. For example, a single discrete DDR3 chip specified at 512Mb invariably contains exactly 229 bits = 536,870,912 bits = 512 Mibit of storage, or 67,108,864 8-bit bytes, variously referred to as either 64 mebibytes or (debatable) 64 megabytes.
The actual rule is: 8 bits = 1 byte. Therefore a 4 megabit cartridge had a capacity of 512 KiB, an 8 megabit cartridge held 1 MiB of data, and so on.