The clinical significance of fundus magnification produced during direct ophthalmoscopy of the corrected eye has not been fully established. Based on paraxial ray tracing, fundus magnification (M) can be defined by a simple equation, M = (K'/4) x (Fs/K), where K' is the dioptric axial power of the eye, Fs is the correcting thin lens power and K is the ocular ametropia. Refractive myopes produce greater fundus magnification than axial myopes, whereas refractive hyperopes produce lower fundus magnification than axial hyperopes. If we assume 15 x fundus magnification as our standard magnification for an emmetropic reduced eye, then wearing glasses or putting the focusing lens at or close to the anterior focus of the eye is able to achieve the standard magnification for axial myope and axial hyperope, whereas wearing contact lenses is able to achieve the standard magnification for refractive myope and refractive hyperope. Vertex distance has greater influence on fundus magnification produced during direct ophthalmoscopy than other funduscopic techniques. In conclusion, the newly defined formula has clinical applications during direct ophthalmoscopy.