16

Intentional Circular
References
In This Chapter
● General information regarding how Excel handles circular references
● Why you might want to use an intentional circular reference
● How Excel determines calculation and iteration settings
● Examples of formulas that use intentional circular references
● Potential problems when using intentional circular references
When most spreadsheet users hear the term circular reference, they immediately think of an error
condition. In the vast majority of situations, a circular reference represents an accident — some-
thing that you need to correct. Sometimes, however, a circular reference can be a good thing.
This chapter presents some examples that demonstrate intentional circular references.

What Are Circular References?

When entering formulas in a worksheet, you occasionally may see a message from Excel, such as
the one shown in Figure 16-1. This message is Excel’s way of telling you that the formula you just
entered will result in a circular reference. A circular reference occurs when a formula refers to its
own cell, either directly or indirectly. For example, you create a circular reference if you enter the
following formula into cell A10 because the formula refers to the cell that contains the formula:

=SUM(A1:A10)

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