Needs solving: Circular Calculation Error

Our take

Navigating circular calculation errors in Excel can be challenging, especially when automating complex budgeting processes. In your case, incorporating profit margins, contingencies, and kickbacks into a final contract sum creates a loop that can frustrate even experienced users. While manually adjusting the mark-up to 6.325% is a temporary fix, there are innovative solutions to streamline this process. By exploring Excel's advanced formula capabilities and automation tools, you can simplify your calculations and enhance accuracy, making the budgeting experience more efficient and less daunting.

Hi, I need help with this excel circular formula issue. I am to automate something that seems impossible to an excel noob like me.

While doing budgeting for a project, I have to account for our Profit Margins, Contingencies and kick backs. Meaning whatever the contract sum is after adding profits and contingencies, I have to account for 5% that goes to kick backs, and include that into our costing as a FINAL contract sum.

Since the FINAL contract sum is tied to the 5%, there is a circular error. As a temporary fix, via trial and error, I had to manually input 6.325% as the actually mark-up to account for the 5%.

Is there a way to automate this process? Is it even possible?

Unfortunately, I can't add a picture to demonstrate my problem.

submitted by /u/Ok-Wasabi630
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