Using Excel Circular References To Do Calculations

This video shows you how to use the Excel Circular References feature to perform iterative calculations. These are calculations where two or more cells are inputs to each other - e.g. cell C5 is an input to the formula in cell C9, and cell C9 is also an input into the formula in cell C5. This demo uses the example of a company's pre-tax and post-tax profit.

[@sherylofwona2821]

Thank you so much! This was incredibly clear and helpful

[@deandanderson4006]

Solved my problem another video couldn't, thank!

[@ouzytheoriginal]

very good mate. thanks for the contribution, its the first time i have encountered this method; however i confront this type of problem due to a mistake in my calculations at work so far its always good to know

[@traceyemery2017]

Thank you. This solved my problem and was such a simple solution. So grateful.

[@cshahed]

Thanks, this is the first time I found circular reference useful, all this time I was wondering why Excel has this.

[@teslazation]

God Bless you my friend. This solved my problem.

[@harinibalu2934]

Thank you so much , you just saved me hours of time!

[@bigstepper4125]

God bless you. This was so helpful

[@josephng4289]

Is it possible to apply the circuit breaker technique to one specific tab or even specific range on one worksheet ? The key is to avoid missing other potential circular loop error

[@antseriknomper976]

THANK YOU!

[@nhavuong2123]

thank you! you saved my ass

[@sunantasamakketkit9706]

Thx

[@districtgrandlodgesanorth1557]

So, fundamentally it's good to know how iterative calculations work.
Practically the outcome of this calculation is wrong, and this is the worst method for calculating 5% of the after tax profit:
Total tax = 40K therefore After tax profit is 60K, and 5% of 60k = 3k): If I was the employee I'd be pissed at the above outcome.
There is an inherent danger in creating circular references like this, and this is a classic example of that danger. Rather add additional steps to the calculation than use a function where you are not familiar with the appropriate application.

[@esek308]

That's certainly a way to **** an employee out of 150 bucks. Why exactly is the employee benefit based on a value that already has the employee benefit deducted from it?