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From Diablo Wiki
→Party Benefits
For example (for a sample baseline 25% drop):
Party Chance Of Getting Something 1 1-(0.75^1) = 0.250 2 1-(0.75^2) = 0.438 3 1-(0.75^3) = 0.578 4 1-(0.75^4) = 0.684 5 1-(0.75^5) = 0.763 6 1-(0.75^6) = 0.822 7 1-(0.75^7) = 0.867 8 1-(0.75^8) = 0.900
Note that most things don't have a 25% chance of dropping something, so the values in the table need to be adjusted for that fact. Also, some monsters (namely bosses and chests), roll more than once for items (since they can drop multiple items). The bonus for additional players gets calculated into each roll.