This is not an error because it will not halt or prompt the user to alter the computations.This triggers Excel to display a circular reference warning, as shown in the image below. Consequently, Excel will simply keep adding the new value to cell C16, which will keep increasing exponentially. It creates an endless loop because the supplied range also contains the C16 cell (in which the result needs to be written). However, we gave the range C5:C16 to the SUM Function. For an instance, Using the SUM Function the C16 field, we’re attempting to compute their total revenue. In the following table, we’ve shown statistics of the world’s one of the biggest brands Apple’s revenue over the past decade. Here’s an example to help you understand. The cell’s value will be changed every time the unending reference loop is not stopped. In other words, a circular reference happens when a formula, either directly or indirectly, refers back to its own cell, resulting in an unending loop of computations. When you ended up with a formula in a cell, you create a circular reference – which performs the calculation using the cell reference (in which it was entered) like a snake chasing its own tail.
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