# What Does Circular Reference Mean in Excel?

Circular references are one of the most confusing and intimidating concepts in Excel. Excel users can often encounter circular references when they are working with formulas and functions, but they may not understand what they mean or how to fix them. This article will explain what a circular reference is, provide examples, and explain how to fix them. Knowing how to handle circular references can help make working with Excel much easier and more efficient.

**A circular reference in Excel is when a formula refers back to its own cell, either directly or indirectly. This causes the formula to continuously recalculate, and can cause errors or slow down the system. To avoid this, check for circular references by going to Formulas > Error Checking > Circular References. If found, try to break the reference by changing the formula, or by using the Iterative Calculation option in the Excel Options dialog.**

## What is a Circular Reference in Excel?

A circular reference in Excel is an error that occurs when a formula refers to its own result, resulting in an infinite loop. The term “circular reference” is used to describe this type of error because the formulas that cause it form a circular chain. This means that the result of one formula is used in another formula, which in turn is used in the first formula, forming a loop. This loop can cause the formulas to run indefinitely, resulting in an error.

Circular references can be caused by a variety of factors, such as incorrect formula syntax or a programming error. They can also occur when a user creates a formula that refers to itself, or when multiple formulas refer to each other in a loop. When a circular reference is detected, Excel will display an error message to alert the user.

## How to Spot and Resolve a Circular Reference Error

When a circular reference is detected, Excel will display an error message to alert the user. To identify the source of the error, the user should look for a formula that contains a reference to its own result or a reference to another formula that references its own result. Once the source of the error is identified, the user should modify the formula to break the loop and resolve the error.

In some cases, the user may need to adjust the formula to refer to a previous result, instead of the current result. For example, a formula that multiplies a cell by its own value would result in a circular reference error. To resolve this error, the user should modify the formula to multiply the cell by its previous value.

In other cases, the user may need to adjust the formula to refer to an absolute cell reference rather than a relative cell reference. A relative cell reference is a reference to a cell relative to the current cell, while an absolute cell reference is a reference to a specific cell. When a formula contains a relative cell reference, the reference will adjust when the formula is copied or moved, which can cause a circular reference error. To resolve this error, the user should modify the formula to refer to an absolute cell reference.

## How to Avoid Circular Reference Errors

To avoid creating a circular reference error, the user should ensure that each formula does not refer to its own result or the result of another formula in the same loop. Additionally, the user should avoid using relative cell references when creating formulas, as these can cause the reference to adjust when the formula is copied or moved.

The user should also consider using the Trace Precedents and Trace Dependents features in Excel to trace the source of the circular reference. The Trace Precedents feature will display arrows that trace the source of the circular reference, while the Trace Dependents feature will display arrows that trace the destination of the circular reference.

Finally, the user should consider using the Evaluate Formula feature in Excel to diagnose the source of the circular reference. This feature will step through the formula and display the result of each individual operation, which can help the user identify the source of the error.

## Circular Reference Errors in Other Programs

Circular reference errors can also occur in other programs, such as databases and programming languages. In these cases, the user should look for a formula or code that contains a reference to its own result or to another formula or code that references its own result. Once the source of the error is identified, the user should modify the formula or code to break the loop and resolve the error.

Similarly to Excel, the user should consider using the Trace Precedents and Trace Dependents features to trace the source of the error, as well as the Evaluate Formula feature to diagnose the source of the error. Additionally, the user should consider using the Debug feature in programming languages to identify the source of the error.

## Conclusion

A circular reference in Excel is an error that occurs when a formula refers to its own result, resulting in an infinite loop. There are several ways to spot and resolve a circular reference error, including using the Trace Precedents and Trace Dependents features, as well as the Evaluate Formula feature. Additionally, the user should take steps to avoid creating a circular reference error in the first place. Circular reference errors can also occur in other programs, such as databases and programming languages, and can be resolved in a similar manner.

## Few Frequently Asked Questions

### What Does Circular Reference Mean in Excel?

A circular reference is an error in an Excel formula caused by a cell or range of cells that refer back to the formula’s original cell. This type of reference causes a calculation loop, meaning that the formula cannot be calculated correctly.

### How Do Circular References Occur in Excel?

Circular references can occur in Excel when a formula refers back to its own cell, or to a range of cells that includes its own cell. This type of reference causes a calculation loop, meaning that the formula cannot be calculated correctly. Circular references can also occur when two or more formulas refer back to each other in a loop.

### What Are the Effects of Circular References in Excel?

A circular reference in Excel can have a number of effects. It can cause the formula to return an incorrect result, or even an error message. It can also cause the formula to take longer to calculate, as the calculation loop must be repeated multiple times. In some cases, a circular reference can cause Excel to become unresponsive or crash.

### How Can Circular References Be Prevented in Excel?

The best way to prevent circular references in Excel is to carefully check all formulas before using them. Ensure that none of the formulas refer back to their own cells, or to a range of cells that includes their own cells. It is also important to ensure that no two formulas are referencing each other in a loop.

### What Are the Alternatives to Circular References in Excel?

The best alternative to a circular reference in Excel is to use an array formula. An array formula performs calculations on multiple values at once, and can be used to calculate results that would otherwise require a circular reference. It is important to note that array formulas have their own limitations and should be used with caution.

### How Can Circular References Be Resolved in Excel?

Circular references can be resolved in Excel by using the Trace Error tool. This tool can be used to trace the source of the circular reference and manually edit the formula to remove the circular reference. It is important to note that the Trace Error tool can only be used to trace and fix circular references, so it is important to check all formulas carefully before using them.

### Circular Reference – Fixing Circular Reference in Excel 2013

In conclusion, a circular reference in Excel occurs when a formula references its own cell or a range of cells that includes its own cell, creating an infinite loop. This situation can be avoided by double-checking the formulas you enter in your worksheet to ensure that none of them contains a circular reference. Knowing what a circular reference is and how to spot it in your worksheet can help you avoid any issues caused by this problem and keep your Excel documents running smoothly.