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The same as we use in decimal, except instead of powers of 10 it's powers of 2. Working from the least-significant bit (from right to left), each bit is worth:

2^0 = 1

2^1 = 2

2^2 = 4

2^3 = 8

2^4 = 16

2^5 = 32

2^6 = 64

2^7 = 128

So if the octet is 10110101, then working from right to left we get:

1*1 = 1

0*2 = 0

1*4 = 4

0*8 = 0

1*16 = 16

1*32 = 32

0*64 = 0

1*128 = 128

If we add these values up we get 181. Thus 10110101 is the binary equivalent of 181 decimal.

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Q: What formula determines the decimal value for each bit position in an octet?
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