Understanding The Numbers
There are two key numbers to understanding how to calculate bandwidth use. They are the number 1024 and 8. 1024 bits = 1 Mbit. 8 bits = 1 byte.

An easier way to understand conversion is to follow this example:

To convert bits to Kilobits divide by 1024.
To convert Kilobits to Megabits divide by 1024
To convert Megabits to Gigabits divide by 1024

To convert bits to bytes divide by 8
To convert Kilobits to Kilobytes divide by 8
To convert Megabits to Megabytes divide by 8
To convert Gigabits to Gigabytes divide by 8

To convert bytes to Kilobytes divide by 1024
To convert Kilobytes to Megabytes divide by 1024
To convert Megabytes to Gigabytes divide by 1024

Although the repetitive example may seem overdone we believe that you will be able to see the relation between various measurements of bits and bytes.
Why Do I Need To Know Conversions?
It is important to be able to convert the aggregate bits per second of your traffic to a byte data transfer value for a given time period. Typically when a hosting company calculates bandwidth fees Gigabytes transferred is measured.
Understanding Time
A streaming data transfer rate of media is often calcuated using bits per second instead of bytes. The calculations presented below illustrate the amount of bits transferred in a given period. You may substitute 1 byte in place of 1 bit to calculate the amount of bytes transferred in a given time period.
1 bps occuring for 1 minute = 60 bits
1 bps occuring for 1 hour = 360 bits
1 bps occuring for 1 day = 21600 bits
1 bps occuring for 1 week = 151200 bits
1 bps occuring for 1 avg. month = 650160 bits
Calculate: transfer rate(60)
Calculate:
transfer rate(60*60)
Calculate: transfer rate(60*60*24)
Calculate: transfer rate(60*60*24*7)
Calculate: transfer rate(60*60*24*7*4.3)

Our Example: 10 person webcam chat
We start exploring our example using kilobits per second data transfer rate. We have 10 people that send a webcam stream to our server at 160 Kbps. The total resulting Kbps being sent to our server for redistribution is 1600 Kbps.
10 people have the ability to view 3 other webcam streams. Since each stream is 160 Kbps then each person receives data transfer of 480 Kbps. In total 10 people will consume 4800 Kbps from our server.

Overall our server will have a data transfer rate being metered by our hosting provider at 6400 Kbps. So, the big question is, how much is this going to cost us in terms of total data transfer for a given time period?
If you have 6400 Kbps rate you can change that to Kilobytes per second by dividing by 8. Therfore, for every second you have pay your hosting provider for 800 Kilobytes of data.

Now we need to convert the number to a more relevant time period. For this example we will calculate the average monthly transfer that would result from 800 Kilobytes of data being transferred every second.

We have 800 Kilobytes transferred every second. If we look the the calculation example above we would see that if we wished to convert the Kilobytes to an average monthly transfer we would use the transfer rate(60*60*24*7*4.3) calculation. Therefore, 800(60*60*24*7*4.3) which equals 2080512000 Kilobytes.

Convert this number to Gigabytes so that you may easily compare to our hosting data transfer allowances and fees.
2080512000 Kilobytes divided by 1024 = 2031750 Megabytes
2031750 Megabytes divided by 1024 = 1984.13 Gigabytes*


*Please note that other functions of the chat and text transfer will also have a data transfer rate. This extra data consumption from our server will add to the overall average monthly data transfer for 10 people. We estimate that 10 people will consume 45 Gigabytes of data from our server over an average month as a result of text transfer and other chat functions. Therefore, for this example, we would transfer a little over 2000GB!
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