Handgun sits in the Pre-Hardmode tier of Terraria progression based on its rarity rating (2).
Unreal is the strongest prefix for Handgun — +15% damage, +10% speed, +10% crit, +15% knockback (ranged only).
Handgun deals 26 base damage, 15-tick use time. Use the DPS calculator to see expected damage per second with prefixes and crit applied.
Handgun is used as an ingredient in 1 recipe. See the "Used to craft" section above for the full list.