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Subnetting involves dividing the network into smaller portions called subnets. In a sense, the IP address then has three components – the network part, the subnet part and, finally, the host part. All a subnet mask does is indicate how many bits are being "borrowed" from the host component of an IP address.

To calculate the number of possible subnets, use the formula 2n, where n equals the number of host bits borrowed. For example, if three host bits are borrowed, then n=3. 23 = 8, so eight subnets are possible if three host bits are borrowed.

The most common of them are classes A, B, and C. Classes D and E exist, but aren't used by end users. Each of the address classes has a different default subnet mask. You can identify the class of an IP address by looking at its first octet.

Manufacturers of home routers use private IP addresses, including 192.168.1.1, as the default gateway, allowing users to type http://192.168.1.1 into a web browser to access the router admin panel and change router settings.

A subnet mask is used to divide an IP address into two parts. One part identifies the host (computer), the other part identifies the network to which it belongs. To better understand how IP addresses and subnet masks work, look at an IP address and see how it's organized.

An IPv4 address is made up of 32 binary bits, which is divided into a Network portion and a Host portion with the help of a Subnet Mask. The 32 binary bits are broken into four octets (1 octet = 8 bits). Each octet is converted to decimal and separated by a period (dot).

A subnet, or subnetwork, is a network inside a network. Subnets make networks more efficient. Through subnetting, network traffic can travel a shorter distance without passing through unnecessary routers to reach its destination.