The correct way to measure like noted above is to measure outside to outside of the two fathest bullets apart from each other, then subtract that by the bullet hole Dia. The bullet hole Dia. is not hte same as the actuall bullet Dia. Lets say you are shooting a 22-250, the caliber is a .22, but 9 times out of 10 the bullet hole will measure .20 on paper.
So the correct way to get this is to take your paper target down then lay face down on something hard and push back the tore paper that has been pushed through, try ing to fill the hole back. Then you measure the bullet hole" you might measure 2 bullet holes, then measure the outside to outside of the furthest holes and subtract the bullet hole Dia number you got from measuring off the hole itself and there is your group.
When measuring the bullet holes you include measuring the black around the hole, that is what the bullet did going through.
Troy