Excel Circular Reference Warning: How to Fix and Prevent

Problem Scenario

Excel shows a circular reference warning and your formulas won't calculate correctly because a cell references itself in a loop.

Solution Steps

1. Find circular reference using Formulas > Error Checking
2. Trace precedents to identify the circular path
3. Break the loop by changing one cell to manual value
4. Use iterative calculation if intentional circular reference
5. Review named ranges for circular dependencies

Code Snippet

Go to File > Options > Formulas > Enable iterative calculation (if needed)