First, those clicks are in MOA not inches. So take .125 MOA/click and multiply by 1.047 to get a true inch per click. .125 * 1.047 = .130875" per click.
Next step is to go .130875 * (yardage/100). So for 300 yards you would use .393" per click. If you want to compensate for 12 inches of bullet drop at 300 yards you divide 12 by .393 which = 30.5 clicks. It is up to you whether you go 30 or 31 clicks.
Converting from MOA to inches is not neccesary for shorter ranges, however, when you get out there and start using alot of clicks, it adds up. It is better to convert it in most LR applications