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BMI, or Body Mass Index, measures body fat based on height and weight, with a high BMI potentially increasing disease risk. It is calculated by dividing weight in kilograms by height in meters squared. For example, to convert 175 pounds to kilograms, multiply by 0.4536, resulting in 79.38 kg. To convert height, 5 feet 9 inches is first converted to inches (69 inches), then to meters by multiplying by 0.0254, yielding 1.75 meters. Using the formula, 79.38 kg divided by (1.75 m)² results in a BMI of 25.8. The video also includes a formula for calculating BMI with US metrics (pounds and inches) and a chart of weight categories.