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TCP/IP Guide by Charles M. Kozierok

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IP Subnetting Step 5: Determining Host Addresses for Each Subnet

Once you know the addresses of each of the subnets in the network, you use these addresses as the basis for assigning IP addresses to the individual hosts in each subnet. You start by associating a subnet base address with each physical network (since at least in theory, the subnets correspond to the physical networks). You then sequentially assign hosts particular IP addresses within the subnet (or in a different manner, if you prefer!).

Determining host addresses is really quite simple once you know the subnet address. All you do is substitute the numbers 1, 2, 3, and so on for the host ID bits in the subnet address. You must do this in binary and then convert the address to decimal ...

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