To clarify what CanadaRAM said, in a RAID-5, you lose one drive's worth of capacity. So with 3 drives, you lose 33%, with four drives, 25%, five drives 20%, etc. Again, as he also mentioned, you run into diminishing returns, as more drives means more likelihood of two drive failures.
If you want to really protect against data loss, you'll have a RAID-5 with a 'hot spare'. This is an extra drive attached to the RAID controller that sits idle until a drive fails. Then the RAID controller immediately reconstructs the full RAID using this spare drive. (The array will be slow as molasses, as it has to figure out what belongs on the 'missing' drive, and write that to the spare; while servicing normal reads and writes.)
For example, a great way to set up an Xserve RAID is to have each 7-drive side as a 6-drive RAID-5 plus hot spare, then RAID-0 the two sides. (In case you weren't aware, the Xserve has each side show up separately to the computer. It can't span across all 14 drives in hardware.) You'll end up 'losing' four drives worth of capacity, (28%) but you'll be able to lose two drives on each side before you lose data. (And unless three drives on one side fail exactly simultaneously, you should have time to replace the one or two dead ones.)