What the golden ratio is
The golden ratio, written with the Greek letter phi (φ), is about 1.618. Two lengths are in the golden ratio when the whole is to the larger part as the larger part is to the smaller. The calculator multiplies or divides by φ so you can take one dimension and find its golden partner — for example the height that suits a given width, or how to split a face into a larger and smaller field that relate harmoniously.
It appears throughout design history, from architecture to typography, because the resulting proportions avoid both the dullness of a square and the awkwardness of an arbitrary rectangle. It is a guide, not a law — a fast way to reach pleasing proportions you can then adjust by eye.