Binary is a number system that uses two digits, 0 and 1. Decimal is a number system that uses ten digits, 0 through 9. In binary, every digit has a value of either two to the power of zero (1), two to the power of one (2), or 2 to the power of two (4). In decimal, every digit has a value of 10 to the power of zero (1), ten to the power of one (10), or ten to the decimal power of two (one hundred). When converting from binary to decimal we simply take all these values and add them together.
So, for example:
1101 in binary would be calculated as follows: 1*2^3 + 1*2^2 + 0*2^1 + 1 = 13 in decimal.
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