Is Update() NOT linked with graphics refresh rate?

var counter : float;
var elapsed : float;
var fps : float;

function Update() {
   elapsed = Time.time;
   counter++;
   fps = counter/elapsed;
}

When running the above code in the editor, the Stats popout reported ~1600fps, while fps settled at roughly ~80. I always thought Update() was called once per frame? Or is graphics refresh independent of the code loop?

Everything is in one loop. The FPS display in the editor only displays FPS based on rendertimes so it is not an accurate representation of your games FPS. Rendering is only done once per frame.

Frames per second are not independent, they are inclusive of the code. The processor/GPU still have to calculate out the scene of which includes the Update Function and the code it contains. How quickly this calculation resolves per second is your frames per second in game.

Use this for measuring framerate: http://www.unifycommunity.com/wiki/index.php?title=FramesPerSecond. Update is called once every frame.