Armor is a little counter intuitive. The armor consoles stack **survivability**, not damage reduction which is not the same thing. Let me try to explain...

If we consider that the attacker is trying to cause 1000 points of damage on the target, then at 10% resistance he would need to start with 1111 damage because 1111*90% is 1000. 11.1% more firepower is needed to have the same impact against a 10% resistant target. In other words you have 10% damage reduction but can absorb 11.1% more total firepower.

The percentage of damage reduced shows diminishing returns, but the actual survivability of your ship, the amount of firepower you can absorb, goes up much faster than the percentage reduction. This is because from an attacker's perspective he also needs to make up that chunk which simply vanishes.

* At 20% resistance, you would need to start with 1250 damage to cause 1000 which is a 25% increase in total damage absorbed.

* At 30% resistance, you would need to start with 1500 damage to cause 1000 which is a 50% increase in total damage absorbed.

* An easy one to conceptualize: at 50% resistance, you need 2000 damage to cause 1000, which means you can absorb 200% damage. If you take half damage, you can take twice as MUCH damage!

(the game's maximum resistance of 75% is effectively 400% survivability)

In game terms:

* With no armor, my kinetic resist is 9.2% = 110% survivability

* Adding one layer of neutronium ("17.5") increases my kinetic resist to 21.5% = 127% survivability (i.e. +16%)

* A second layer of neutronium ("15") increases my kinetic resist to 29.5% = 142% survivability (i.e. +15%)

* Adding a layer of monotanium ("35") increase my kinetic resist to 42.4% = 174% survivability (i.e. +32%)

You can see that the **survivability**increases pretty closely follow the resist rating of the armor even though the damage reduction does not. It would probably be dead on if I didn't have that small bonus from skills.