Let's start with the basics:
Understanding Tire Size:
Lots of people wonder what the three sets of numbers mean so I am going to explain them. Let's take a popular one for the first gen:
215/45/17
The first number represents the width of the tire in milimeters; in this case, 215mm.
The second number represents the size of the sidewall, called the aspect ratio. It's a percentage of the width (the first number), and in this case it's 45% of 215mm.
The last number represents the size of the wheel diameter in inches.
So, 215 milimeter width, 45% of that number is the sidewall's size, and it fits a 17" wheel.
Diameter:
When upgrading the wheels and tires to a larger size, it's important for most people to keep their wheels close to the stock diameter. When your combined wheel/tire diameter steps outside the factory wheel and tire size, your speedometer cannot read the exact reading and will show up as faster or slower than your actual traveling speed.
Let me explain how to convert the above number to determine the overall tire diameter:
(width x aspect ratio) /25.4 x2 + wheel diameter
(215 x .45)/25.4 x 2 + 17
First you want to find out the size of the sidewall. In order to do this, you multiply the width of the tire by its aspect ratio. This gives you the size of the sidewall in milimeters. In this case the width of 215 is multiplied by a ratio of 45%, which equals 96.75mm.
Now, you're wondering what that size is in inches. In order to convert milimeters to inches, you divide the number of milimeters by 25.4 (because there are 25.4 milimeters in an inch). In this case, the 96.75 divided by 25.4 equals 3.8".
Of course, since the tire is a circle, there is a sidewall on top the wheel and a sidewall underneath the wheel. So, obviously you multiple this by two, giving you the measure of inches that the sidewall adds to the wheel. In this case, 3.8 x 2 = 7.6"
So, there is 7.6" of sidewall sitting around your wheel. The last step is obviously to add that to the diameter of the wheel, which is 17. 17+7.6 = 24.6. This means the wheel/tire combination is 24.6" in diameter. In case you're wondering, this is a spot-on match to the OEM first gen tire size of 205/60/15, which also equals 24.6". Using this tire size will match perfectly with no discrepencies in the speedometer.
If you're too damn lazy, just go here and it will tell you:
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Offset Explained:
Simply explained, offset is a measure in milimeters from the middle of the wheel's width to the wheel's mounting point.
In this picture stolen from Tire Rack you can see there is a distance from the middle of the wheel's width to the mounting hub. That distance is the offset. When you see this number is a wheel measure, it's typically seen as a + number or - number, such as +35 or -16.
There are two types of offset: positive and negative. Positive offset refers to the mounting point being on the half of the wheel width that is closer to the mounting hub (aka closer to the wheel's face). It also means that the majority of the wheel width sits closer to the inside of the wheel well. Obviously, it is denoted in sizes by a + sign.
Negative offset means the mounting point is on the half of the wheel width that is further away from the face of the wheel. It also means that most of the wheel's width sits further away from the inside of the wheel well. It is denoted by a - sign.
Offset Effects:
So what effect does this have on how a wheel is mounted? Well, the higher your offset is, the further the majority of your wheel's width will sit inside the wheel well. This isn't necessarily a bad thing, but you need to be careful that you don't hit any suspension components such as the struts or other links. Inversely, the lower your offset is, the further it sits outside of the wheel well. Too low and the wheel will stick out past the fenders.
In addition, in front-wheel and all-wheel drive cars there exists a dynamic of physics called torque steer. Torque steer means the torque your engine produces, when driving the front wheels, causes the wheels and steering suspension to pull in different directions, which can be a pain if you are trying to launch a drag car as you are struggling to keep it going in a straight line.
The lower your offset, the more weight sits out away from the steering components and this increases the amount of torque steer your car is subject to. In front-, all- and rear-wheel drive cars, it can increase torque steer under braking, making the wheels squirm and shake during hard braking.
Tire Sizes And Width:
It's generally a good idea to stay within a certain reasonable range when placing a tire on a wheel. For example, you wouldn't want to put a tire that was 10 inches wide on a wheel that's only 6 inches wide, at least if you're looking to handle somewhat decently in a sporty, non-rock crawling, off-roading fashion.
So how do you find a tire's width? Above I explained what the tire sizes mean, and the first number in a series, such as 215/45/17, denotes the size of the tire in milimeters. To find that number in inches, divide it by 25.4 (because there are 25.4 milimeters in an inch). So:
215mm / 25.4 = 8.46"
Normally you want to stay pretty close to that size, being just under it. So, a 7 inch wheel or an 8 inch wheel. Also remember that the closer the tire width gets to the wheel width, the less sidewall you have bulging out past the wheel. This can be a good thing if you're looking for responsiveness from a tire (see more below) but a bad thing if you're hoping for a little rim lip protection for the wheel.
I said "normally" above because you can stretch a tire past the width it would normally be, making it fit over the wheel (such as stretching an 8" tire to fit an 8.5" wheel); I will elaborate below.