Shockley's equation is the fundamental relation that gives the drain current of a JFET in its pinch-off (saturation) region:
ID=IDSS(1−VPVGS)2
Here IDSS is the drain-source saturation current (the maximum drain current, flowing when VGS=0), VGS is the gate-to-source voltage, and VP is the pinch-off voltage. The squared bracket is why the transfer characteristic is a curve rather than a straight line.
The equation captures the two limiting cases neatly: when VGS=0 the bracket equals 1, so ID=IDSS (maximum current); and when VGS=VP the bracket is zero, so ID=0 (pinch-off). For any bias in between, it predicts the drain current.
It is highly useful for numerical problems. Rearranged, it also lets you find any one quantity from the others — for example IDSS=(1−VGS/VP)2ID, or VP from a measured ID. When substituting, keep the signs of VGS and VP consistent (both are negative for an n-channel device), so that the ratio VGS/VP is positive.
Differentiating this equation with respect to VGS leads directly to the expression for transconductance, which is why Shockley's equation underpins both the transfer characteristic and the small-signal parameter gm.