To draw a perfect circle in MS Paint, you need to use the Oval tool. With the Oval tool, you can draw a circle in MS Paint by holding down the ⇧ Shift key while dragging. An oval can also be converted to a circle by holding down the ⇧ Shift key after creating the oval, but before releasing the mouse button.
Steps
Method 1 of 2: Draw a circle with the Oval Tool

Step 1. Start Microsoft Paint
It can be found at Start> All Programs> Accessories.

Step 2. Select the Oval tool
It's the oval button on the toolbar under Shapes.

Step 3. Press and hold the ⇧ Shift key

Step 4. Press the left mouse button and drag it (the mouse) across the canvas
Starting at the point you clicked, the Oval tool draws a perfect circle instead of the usual oval.
Adjust the size of the circle before releasing the mouse button

Step 5. Release the mouse button
Congratulations, you've got a perfect circle!
This method is great for creating concentric circles, as you will have it in front of your eyes while you draw it
Method 2 of 2: Turn the oval into a circle

Step 1. Start Microsoft Paint
It can be found at Start> All Programs> Accessories.

Step 2. Select the Oval tool
It's the oval button on the toolbar under Shapes.

Step 3. Press the left mouse button and drag it (the mouse) across the canvas
Don't release the mouse button.

Step 4. Press and hold the ⇧ Shift key

Step 5. Release the mouse button
If you release the mouse button before pressing ⇧ Shift, you will draw an oval and will not be able to convert it to a circle. If you want, you can undo the oval creation by pressing Ctrl + Z and try again

Step 6. Release ⇧ Shift
The oval is converted to a circle according to the height of the oval.