Adding a short example after explaining the part of the method I am writing my paper's (social science) methodology part and it consists of several steps that I express mathematically. However, I have a feeling that one of the steps might be better explained if I also add some kind of an example to it right after formulas.
How acceptable is it in academia? Generally, does it mean that I have to explain my methods in a way they do not need an extra explanation?

I intend to publish this paper (maybe this is irrelevant, adding as extra info)
Illustrating your method with a brief example is perfectly acceptable, especially if you do it in a reader-friendly way. Indeed, paragraphs often start with a "topic sentence" (which introduce the main idea, e.g. a concise description of your method), followed by some "supporting sentences" (which substantiate your main idea, e.g. by providing examples), before ending with a "concluding sentence". Such a paragraph structure enhances readability - so go for it!