The Formula, Worked Once by Hand
Both units count bytes; they disagree only on what "giga" multiplies. GB uses the metric ladder (×1,000 per step), GiB uses the binary ladder (×1,024 per step). Converting is one multiplication:
500 GB × 1,000,000,000 = 500,000,000,000 bytes
then divide by 1,073,741,824 (= 1,024³)
500,000,000,000 ÷ 1,073,741,824 = 465.661 GiB
That 465.66 is exactly what Windows prints (labeled "GB") for a 500 GB drive — the conversion and the "shrink" are the same arithmetic. The full story of why two systems exist, who uses which, and how the gap compounds from 2.4% at kilobyte scale to 12.6% at petabyte scale lives in our companion guide: GB vs GiB, explained properly.