2^((EffDR-EffAR)/40)
Essentially, assuming you and your target are level 20:
- EffDR is your effective damage rating.
- For martial weapons (everything but staves and wands) EffDR is equal to 5 times your weapon attribute up to attribute level 12. If you go past level 12, you get 60 plus 2 for every attribute level past level 12. Critical hits get +20 to their EffDR.
- For spells, staves, and wands, EffDR is equal to 3 times your character's level. At level 20, this is 60.
- EffAR is the target's effective armor rating. It's whatever armor the enemy has, minus any armor penetration or other effects.
- The /40 means that for every increase in EffDR by 40 (or a lowering of enemy armor by 40), you deal twice the damage. Conversely, a lowering of EffDR by 40 (or increase in enemy armor by 40) cuts the damage in half.
- With either 12 in your weapon attribute or as a level 20 character casting spells, against a 60 AL target, you deal 100% of whatever damage is listed.