If you want to insert an iterative calculation (one that repeats itself a limited number of times until certain conditions are met), you might want to use a circular reference formula, but you’ll need to tweak Excel’s settings to allow it. However, there is one way you can use circular references in Excel to your advantage. For instance, if you’re analyzing data with a SUMIF formula, and one of the cells in your data set is referencing the output from the same cell containing that formula, Excel can’t calculate the result, causing this error to appear. You’ll see circular reference warnings for any formula you try to insert into Excel that loops back to itself. We’ll explain everything you need to know about circular references (and how to avoid or potentially use them) in this step-by-step guide. As the formula can break its own result, this creates a circular reference. If you see a circular reference warning in Excel, it usually points to a formula in a cell that, in some way, refers back to itself.
