Home » excel » Avoid circular reference in Excel

Avoid circular reference in Excel

Posted by: admin May 14, 2020 Leave a comment

Questions:

I would like to calculate price including risks. The problem is that I would like to avoid circular reference. Is there any way to avoid enabling “iterative calculation”?

Basically I need to calculate Price in B9 and it is =(B1+B4)/(1-B7)

where B4 is =B9*B2

enter image description here

Result with iterative calculation” enabled:

enter image description here

How to&Answers:

No matter the economical method you’re using to calculate the risk (I’m not an economist), without the help of the Solver or VBA, the only way to do this is constructing an iterations table. The more expanded the table is, the more exact the solution will be…

Iterations table

Just place:

On cell D5: =($A2+D4)/(1-$A6)

On cell E4: =$A4*D5

and drag the formulas to the end of the table (horizontally).