Keyword density is the percentage of times a keyword or phrase appears on a web page compared to the total number of words on the page. In the context of search engine optimization keyword density can be used as a factor in determining whether a web page is relevant to a specified keyword or keyword phrase.
Density = ( Nkr / ( Tkn -( Nkr * ( Nwp-1 ) ) ) ) * 100. where Nwp = the number of terms in the keyphrase.
This general formula allows that the total word count will be unaffected if the key(phrase) is indeed a single term, so it acts as the original formula.
Source: Wikipedia
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