Network Address Basic Concepts Explained with Examples
An IP address consists of a network address and a host address. The network address is used to create a group of IP addresses sharing the same network address. The host address provides a unique identity for the device within the group. There are millions of IP addresses. Managing these IP addresses is a challenging task. To make IP management easier, designers use many methods. Network addressing is one of them. It allows designers to create IP subnets.
A network address in a computer network is a portion of an IP address that represents a group of IP addresses. The group of IP addresses is known as an IP subnet. You can divide IP subnets into two types: default and custom. Default IP subnets are also known as IP classes.
There are five IP classes. The following table lists them.
| Class | Start address | End address |
| A | 0.0.0.0 | 127.255.255.255 |
| B | 127.0.0.0 | 191.255.255.255 |
| C | 192.0.0.0 | 223.255.255.255 |
| D | 224.0.0.0 | 239.255.255.255 |
| E | 240.0.0.0 | 255.255.255.255 |
Default IP subnets provide a large number of IP addresses. Many networks do not need so many IP addresses. For example, the IP subnet 1.0.0.0/8 provides 16777214 IP addresses. No one would like to put 16777214 devices in a single network. Most networks don't even have that many devices. If you use this IP subnet in a small network, you will waste millions of IP addresses.
Subnetting solves this issue. It allows you to create custom IP subnets based on your requirements and network size. For example, if your network has 250 devices, you can use the 1.0.0.0/24 IP subnet. This subnet provides 254 IP addresses.
When you break a large IP subnet into small IP subnets, you lose two IP addresses per IP subnet. These IP addresses are the network address and the broadcast address.

Each IP subnet reserves two IP addresses. It reserves the first IP address for the network address. It reserves the last IP address for the broadcast address. You cannot assign network and broadcast addresses to devices. A network address provides a group identity to all group members. Routers store network addresses in routing tables and use them to make forwarding decisions.
Key points:-
- An IP group is called an IP subnet.
- A network address is a group address of an IP subnet.
- A network address belongs to all group members.
- Default IP subnets are known as IP classes.
- You can create custom IP subnets from default IP subnets.
- In each IP subnet, the first address is the network address, and the last is the broadcast address.
- Routers use network addresses to identify IP subnets and make forwarding decisions.
This tutorial is part of the tutorial series "IP Addressing, and Subnetting in Computer Networks Explained with examples". Other parts of this series are the following.
Chapter 01 Introduction to Subnetting
Chapter 02 Network Address Basic Concepts Explained with Examples
Chapter 03 The Subnet Mask and Slash Notation
Chapter 04 Converting Decimal IP Addresses to Binary and Binary to Decimal
Chapter 05 Basic Subnetting in Computer Networks Explained
Chapter 06 Subnetting Tutorial - Subnetting Explained with Examples
Chapter 07 Subnetting Tricks: Subnetting Made Easy with Examples
Chapter 08 FLSM Subnetting and VLSM Subnetting
Chapter 09 VLSM Subnetting Explained with Examples
Chapter 10 VLSM Subnetting Examples and Calculation Explained
Chapter 11 Route Summarization Advantages and Disadvantages
Chapter 12 Supernetting Tutorial: - Supernetting Explained with Examples
Conclusion
Subnetting is an essential strategy for efficiently managing IP addresses in modern networks. By dividing large address spaces into smaller, more suitable segments, you can minimize address waste, improve network performance, and enhance security. An IP address has two components: the network address and the host address. The network address is used for subnetting.
Author Laxmi Goswami Updated on 2026-05-07