Not bad, but not very "unbelievable." All these little math tricks have a reasonable explanation. Here's this ones:
Supposing your phone number is represented by:
abc-defg
You could write the first number (1st 3 digits) as:
100a+10b+c
And the second number (last 4 digits) as:
1000d+100e+10f+g
Then the whole expression would come out to:
(((100a + 10b + c)(80) + 1)(250) + 2(1000d + 100e + 10f + g) -250) / 2
If you expand that you will get:
1000000a + 100000b + 10000c + 1000d + 100e + 10f + g
Therefore appearing on the calculator in the same order as in the original phone number:
abc-defg