Mohr's circle is a tool for analyzing element stress. The drawing below shows mohr's circle and some of the relavent points of interest.
Given a state of stress, (σx,σy,τxy), we can calculate the principle stresses,
σ1=12(σx+σy)+12(σx−σy)2+4τxy2
σ2=12(σx+σy)−12(σx−σy)2+4τxy2