Freightdriver; The only "true" way to do a compression ratio test is to pour a "downfill volume" using a burrett for CC calibration. Sans that, to do a "ROUGH mathematical" calc., do this;
Remember this is ROUGH, but good enough for here, to get a ballpark on what you're working with,
(pie) X R2 X stroke = Volume
Then; Volume X 1000/ 61 = CC
For Example on a .030" overbore 400 engine, with the piston .120" downhole as you've indicated
Bore 4.370"/2 = 2.185 is the "R" or "Radius"
Stroke = 3.38"
Pie = 3.14 ( rounded off for this)
Now;
Radius X itself, ( 2.185 X 2.185 ) = 4.774 X 3.14 X 3.38 = 50.669 "cubic inchs of swept volume per cylinder.
Now to convert to CC. 50.669 X 1000/61 = 830.6 cc SWEPT VOLUME
Now to calculate C.R. using a swept volume PLUS the clearance volume, then divide by the clearance volume to get a compression ratio.
We'll "guess" here that you're 400 has a head volume(open chamber) around 85 CC, and that the head gasket is a volume of 10 cc, then add a downfill volume of 29.4 cc for the .120" downhole that your pistons are as you indicated, thats 2.45 cc per .010" of volume using the same above formula, for a TOTAL CLEARANCE VOLUME OF 124.4 CC
Therefore; SWEPT VOLUME + CLEARANCE VOLUME = TOTAL VOLUME, DIVIDED BY CLEARANCE VOLUME = COMPRESSION RATIO.
or 830.6 + 124.4 = 955/124.4 = 7.67:1 Compression ratio
Not good news I know, but if as you said, the pistons are indeed .120" downhole @ TDC as you've indicated, and Flat-tops, then thats approx where you are. The problem here is that when the engine was rebuilt it was far too common for rebuilders to access the "jobber" style rebuilder pistons that were indeed the .100 - .120 downhole as you've indicated. They wanted good running engines, unfortuneately, although indeed they run well, power output is "anemic" at best.
Sorry, to be the "bearee" of bad news, but I've seen this a hundred times before on "rebuilder" style engines, as I was an engine rebuilder years ago. Not that compression is "absolute" to make power, but lack of it will limit total output.
Hope this helps, Bob out.