HDD Size conflict between HDD Lable and Windows

mythology8 used Ask the Experts™
I know I have heard this before and the answer is simple, but I need the answer PRONTO for work.
I buy a HDD that says 500GB HDD but windows says it is slightly less? As if I have used some of my HDD?
This is a white box running Windows 7 with <<NO>> crapware and <<NO>> restore point or recovery.
That being said I remember there being some logic explaining why HDD's come as one size but Windows shows it as another? Something to do with 1MB really being 1024?
Please clarify this for me!

Thank you!!
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a 500GB drive normally has 500,000,000 Bytes of space.  500GB should actually be 500 x 1024 x1024 x 1024 = 536870912000.  so when you buy a drive it never gives you a usable space equal to advertised.
labels are also quoting the unformatted capacity of a drive.  After formatting, you will see a further decrease due to space taken to map all the clusters/MFT/FAT etc



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