diff --git a/README.md b/README.md
index b96fa19a..d0dfece7 100644
--- a/README.md
+++ b/README.md
@@ -44,3 +44,84 @@ module "subnets" {
 | cidr_block                   | ``             | The base CIDR block which will be divided into subnet CIDR blocks (e.g. `10.0.0.0/16`)                                               | Yes      |
 | vpc_default_route_table_id   | ``             | The default route table for public subnets. Provides access to the Internet. If not set here, will be created. (e.g. `rtb-f4f0ce12`) | No       |
 | availability_zones           | []             | The list of Availability Zones where subnets will be created (e.g. `["us-eas-1a", "us-eas-1b"]`)                                     | Yes      |
+
+
+## TL;DR
+
+`tf_subnets` creates a set of subnets based on `${var.cidr_block}` input
+and amount of Availability Zones in a region.
+
+For subnet set calculation `tf_subnets` uses TF
+[cidrsubnet](https://www.terraform.io/docs/configuration/interpolation.html#cidrsubnet-iprange-newbits-netnum-)
+interpolation.
+
+### Calculation logic
+
+```
+${
+  cidrsubnet(
+  signum(length(var.cidr_block)) == 1 ?
+  var.cidr_block : data.aws_vpc.default.cidr_block,
+  ceil(log(length(data.aws_availability_zones.available.names) * 2, 2)),
+  count.index)
+}
+```
+
+
+1. Use `${var.cidr_block}` input (if specified) or
+   use a VPC CIDR block `data.aws_vpc.default.cidr_block` (e.g. `10.0.0.0/16`)
+2. Get number of available AZ in the region (e.g. `length(data.aws_availability_zones.available.names)`)
+3. Calculate `newbits`. `newbits` number tells on how many subnets will
+   be CIDR block (input or VPC) divided. `newbits` is an amount of `binary digits`.
+
+    Example:
+
+    `newbits = 1` - 2 subnets are available (`1 binary digit` allows to count up to `2`)
+
+    `newbits = 2` - 4 subnets are available (`2 binary digits` allows to count up to `4`)
+
+    `newbits = 3` - 8 subnets are available (`3 binary digits` allows to count up to `8`)
+
+
+    etc.
+
+
+    1. We know, that we have `6` AZs in a `us-east-1` region (see step 2).
+    2. We need to create `1 public` subnet and `1 private` subnet in each AZ,
+       thus we need to create `12 subnets` in total (`6` AZs * (`1 public` + `1 private`)).
+    3. We need `4 binary digits` for that ( 2<sup>4</sup> = 16 ).
+       In order to calculate amount of `binary digits` we should use `logarithm`
+       function. We should use logarithm for `base 2` because decimal numbers
+       can be calculated as `powers` of binary number.
+       See [Wiki](https://en.wikipedia.org/wiki/Binary_number#Decimal)
+       for more details
+
+       Example:
+
+       For `12 subnets` we need `3.58` amount `binary digits` (log<sub>2</sub>12)
+
+       For `16 subnets` we need `4` amount `binary digits` (log<sub>2</sub>16)
+
+       For `7 subnets` we need `2.81` amount `binary digits` (log<sub>2</sub>7)
+
+       etc.
+
+    4. We can't calculate amount `binary digits` using fractional values.
+       We can't round it down because smaller amount `binary digits` is
+       insufficient for required number calculation.
+       Thus we should round it up. See TF [ceil](https://www.terraform.io/docs/configuration/interpolation.html#ceil-float-).
+
+       Example:
+
+       For `12 subnets` we need `4` amount `binary digits` (ceil(log<sub>2</sub>12))
+
+       For `16 subnets` we need `4` amount `binary digits` (ceil(log<sub>2</sub>16))
+
+       For `7 subnets` we need `3` amount `binary digits` (ceil(log<sub>2</sub>7))
+
+       etc.
+
+    5. Assign private subnets according to AZ number (we're using `count.index` for that).
+    6. Assign public subnets according to AZ number but with shift.
+       Using shift number according to amount of AZs in a region (see step 2)
+       (we're using `length(data.aws_availability_zones.available.names) + count.index` for that)