User blog comment:Snes/A Rework of the CDR System/@comment-69.141.8.150-20120619164931/@comment-101.165.11.188-20121221002904

The effect of armor is to increase your effective health, relative to your base by 1%.

If you've got 100 health and no armour, you've got 100 effective health.

If you've got 100 health and 1 armour, you've got 101 effective health. If you've got 100 health and 100 armour, you've got 200 effective health.

If you've got 100 health and 101 armour, you've got 201 effective health.

If you look at the %damage reduction increase it looks like it diminishes, but that's just to offset the effect described in the article around CDR.

Resistances increase your life expectancy linearly. Every point, first or last, increases your effective health by 1% of your health.