![]() Step 5: When you turn on iterative calculation, you need to set two more options: ![]() Step 4: Under Calculation Options, check the Enable iterative calculation box. ![]() To make the circular references work in the Excel workbook, you need to enable iterative calculations.įollow the below steps to enable iterative calculations. Enable/Disable Iterative Calculations in Excel?īy default, iterative calculations are disabled in Excel. Note: We will discuss the settings change later in this article. ![]() The total cost is 217, 25% of the total cost. However, this can be fixed with some changes in Excel settings, and we will see the below result: We have entered the formula =B7*25% and ended up getting a circular reference, as we can see in the preceding image. Let us apply the formula in cell B6 as shown in the following image. However, this is not the total cost because we still need to calculate profit in cell B6, and this will be 25% of the total cost arrived in cell B7. We have applied the SUM function in the B7 cell. Assume we are calculating the cost associated with manufacturing a particular product.
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