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When working with Excel, you’ve likely encountered the term “circular reference,” but what exactly is it? Think of circular references as a snake biting its own tail – a situation where a formula refers back to its own cell, either directly or through a chain of references.
Ignoring circular references can lead to a whirlwind of headaches. Not only can they cause Excel to work harder and slower, dragging down performance, but they also risk the integrity of your data. Incorrect calculations are just the start. If left unchecked, these looping references can prevent Excel from completing its calculations, translating into error messages or, worse, misleading results slipping through unnoticed. This is particularly hazardous in financial or data-dependent scenarios where precision is paramount.
Excel is equipped with built-in tools designed to help you sniff out circular references with ease. Whenever a circular reference is created, Excel typically alerts you with a warning message. To hunt them down:
And remember, staying alert to these warnings is the first step in keeping your Excel sheets error-free.
To resolve circular references, follow these steps:
Trace Dependents and Trace Precedents features under the Formulas tab to understand the relationships between cells.File > Options > Formulas and checking Enable iterative calculation. Set the Maximum Iterations and Maximum Change values to control the precision and performance of calculations.A circular reference in Excel is when a cell in a formula refers to itself, either directly or through a chain of other cells, creating an endless loop that prevents Excel from calculating a definitive result.
To banish circular references in Excel, track them down using the ‘Circular Reference’ warning or via ‘Error Checking’ under the ‘Formulas’ tab, then change the formula that’s causing the loop to eliminate self-reference.
Quickly locate circular references in your worksheet by observing Excel’s status bar for alerts or by navigating to the ‘Formulas’ tab and selecting ‘Error Checking’, then ‘Circular References’ to see a list of cells involved.
Yes, by enabling ‘iterative calculation’ in Excel’s formula settings, you can allow circular references to a certain extent without triggering error messages, but use this feature judiciously to avoid inaccurate results.
To break a circular reference using a macro, you can write VBA code that automates the detection and amendment of circular references, which is especially useful for complex models with numerous dependencies.
John Michaloudis is a former accountant and finance analyst at General Electric, a Microsoft MVP since 2020, an Amazon #1 bestselling author of 4 Microsoft Excel books and teacher of Microsoft Excel & Office over at his flagship MyExcelOnline Academy Online Course.