Prefixes: the decimal ladder versus the binary one
Every data unit is a prefix attached to a byte, and the trouble is that two prefix systems share the same names.
The SI ladder is decimal — each step is a thousand: kilo = 10³, mega = 10⁶, giga = 10⁹, tera = 10¹². Drive manufacturers use this system exactly as intended, so a 1 TB drive holds 1,000,000,000,000 bytes.
Computers, meanwhile, address memory in powers of two: 1,024, 1,048,576, 1,073,741,824. For decades operating systems labelled those binary steps with the same kilo/mega/giga words, and the confusion became permanent. The International System fixed the *notation* with explicit binary prefixes — KiB = 1,024 bytes, MiB = 1,048,576, GiB = 1,073,741,824, TiB ≈ 1.0995 × 10¹² — but the labels on your file manager rarely admit which system they used.
The arithmetic explains every "missing" gigabyte. A 1 TB drive (10¹² bytes) formatted in binary reports about 931.5 GiB — the same hardware, seen through two ladders that drift ~5 % at the mebibyte scale, ~7 % at the gigabyte scale, and almost 10 % at the terabyte scale. Nothing is broken; the unit name was ambiguous.