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Step 5: Determine the Host IDs to Use
The final step in subnetting a network is to determine the valid host IDs and assign IP addresses to the hosts.

The host IDs for each subnet start with the value .001 in the last octet, and continue up to one less than the subnet ID of the next subnet. Keep in mind that the last octet cannot be .000 or .255, as these are reserved for broadcast addresses.

Finally, the valid IP addresses for each subnet are created by combining the subnet network ID with the host ID.

If once again you use the assigned address of 168.20.0.0 with five subnets, the range of IP addresses for each subnet is as follows:
Subnet First IP Address Last IP Address
168.20.32.0 168.20.32.1 168.20.63.254
168.20.64.0 168.20.64.1 168.20.95.254
168.20.96.0 168.20.96.1 168.20.127.254
168.20.128.0 168.20.128.1 168.20.159.254
168.20.160.0 168.20.160.1 168.20.191.254
168.20.192.0 168.20.192.1 168.20.223.254
Note in this example that the value of the third octet in the IP address can differ from the value calculated for the subnet. For example, the address 168.20.33.1 specifies a network ID of 168.20, a subnet of 32 (with a combined network address of 168.20.32), and a host ID of 1.1. The 1 in the third octet is added to the 32 to give a total value of 33 (binary 00100001). However, the subnet mask determines that the network portion of the address is 32, as indicated by the upper 3 bits, and the host ID is 1, as indicated by the lower 5 bits.

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