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What I believe it is: 

Magic Resistance = 1 - (1 - [Hero Base Magic Resistance]) * (1 - [Strength * 0.0008]) * (1 - [Any Magic Reduction Item/Ability 1]) * (1 - [Any Magic Reduction Item/Ability 2]) ... * (1 - [Any Magic Reduction Item/Ability 1 N]) * (1 + [Magic Increasing Item/Ability 1]) * (1 + [Magic Increasing Item/Ability 2]) ... * (1 + [Magic Increasing Item/Ability N])

Spell Amplification = (1 + [Intelligence * 0.0007] + [Magic Increasing Item/Ability 1] + [Magic Increasing Item/Ability 2] ... + [Magic Increasing Item/Ability N])

Damage taken in HP = Spell Damage * Spell Amplification * (1 - Magic Resistance)
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  • It would be better to self answer if you know the formula.
    – TheLethalCarrot
    Nov 25, 2018 at 16:31
  • It doesn't say in the dota 2 documentation exactly how it's computed so I need help to note the formula here. I'm really surprised I got a downvote here. I notice a pattern when I first post with 1 rep on any stackoverflow site I get an initiation downvote lol. I believe it falls under "Game mechanics and terminology"
    – Pherdindy
    Nov 25, 2018 at 16:45

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That is correct. The way i think about it is that multiple factors of amplify/resist spell damage add, not multiply.

So if let's say you have 3 factors that amplify the dmg, you actually do (initialDmg + 50% + 50% + 50% = 250%), not (initialDmg + 50% + 75% + 112.5% = 337.5%). This could lead to huge amounts of dmg.

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