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Circular references are a common error in Excel that can cause problems with your formulas. These errors occur when a formula refers to itself to determine the answer.
EXAMPLE: A circular reference will occur if the function =SUM(E3:G3) is displayed in cell G3.
In the example, cell G3 serves as both the result of the function and as one of the cells used to find the function's result. If you type a circular reference into Excel, a dialog box will appear to help you avoid this error. If you find yourself working with a document containing circular references, the following steps will help you locate and correct them.
Button 
Name 
Function 

Trace Dependents  Dependents are cells used in a formula that contain formulas referring to other cells. EXAMPLE: If you are summing cells D2:D25 and cell D15 contains a formula which uses values from cells C20:C25, then cell D15 is a dependent of your formula. 

Trace Precedents  Precedents are cells used by a formula in another cell. EXAMPLE: If you are summing cells D2:D25, those cells are precedents of your formula. 

Remove All Arrows  When you trace dependents or precedents, Excel displays arrows indicating the cells related to your formula. Once you have found the problem with your formula, you can remove the arrows by clicking this button. 
Select the cell that contains the circular reference
If the Circular Reference toolbar is not displayed, from the View menu, select Toolbars » Circular Reference
The Circular Reference toolbar appears.
NOTE: The toolbar shows the selected cell.
In the Circular Reference toolbar, click TRACE PRECEDENTSor TRACE DEPENDENTS
NOTES:
The Formula bar displays the formula.
Arrows display the precedent or dependent cells.
Identify and correct the problem
If you have more than one circular reference to correct, repeat steps 3 – 4