It's calculated for doing white box testing. It's done by making a control flow diagram.It is a measure of the complexity of a software module and equal to (e - n + 2). where e is the number of edges in the control flow graph :and n is the number of nodes in this graph ;It tells about no. of independend paths in a program code.
During BASIS PATH TESTING programmers run the programme more than one time on all possible individual paths to detect run time errors. These no.of individual paths is called as 'CYCLOMATIC COMPLEXITY'