Microsoft Office Tutorials and References
In Depth Information
Turn On Iterative Calculations
Turn On Iterative
You can perform certain types of Excel
calculations by using the iterative calculation
In some Excel calculations, you cannot derive
the answer directly. Instead, you need to
perform a preliminary calculation, feed that
answer into the formula to get a new result,
feed the new result into the formula, and so
on. The idea is that each new result gets closer
to — converges on — the actual answer. The
process of plugging the preliminary results
back into the formula is called iteration .
As an example, consider a formula that
calculates net profit by subtracting the amount
paid out in profit sharing from the gross profit.
This is not a simple subtraction because the
profit sharing amount is calculated as a
percentage of the net profit. To solve this
problem, you set up your formula and then let
Excel iterate the result.
1 Build a formula that
requires an iterative
calculation to solve.
● Circular reference arrows
are displayed in the
● In the Formulas tab, you
can click Remove Arrows
to hide the circular
2 Click the File tab.
3 Click Options.