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Excel for Office 365 Excel 2019 Excel 2016 Excel 2013 Excel 2010 Excel 2007 To use formulas efficiently, there are three important considerations that you need to understand: Calculation is the process of computing formulas and then displaying the results as values in the cells that contain the formulas. To avoid unnecessary calculations that can waste your time and slow down your computer, Microsoft Excel automatically recalculates formulas only when the cells that the formula depends on have changed. This is the default behavior when you first open a workbook and when you are editing a workbook. However, you can control when and how Excel recalculates formulas.

Iteration is the repeated recalculation of a worksheet until a specific numeric condition is met. Excel cannot automatically calculate a formula that refers to the cell — either directly or indirectly — that contains the formula. This is called a circular reference. If a formula refers back to one of its own cells, you must determine how many times the formula should recalculate. Circular references can iterate indefinitely. However, you can control the maximum number of iterations and the amount of acceptable change. Precision is a measure of the degree of accuracy for a calculation.

Excel stores and calculates with 15 significant digits of precision. However, you can change the precision of calculations so that Excel uses the displayed value instead of the stored value when it recalculates formulas.

As calculation proceeds, you can choose commands or perform actions such as entering numbers or formulas. Excel temporarily interrupts calculation to carry out the other commands or actions and then resumes calculation. The calculation process may take more time if the workbook contains a large number of formulas, or if the worksheets contain data tables or functions that automatically recalculate every time the workbook is recalculated. Also, the calculation process may take more time if the worksheets contain links to other worksheets or workbooks.

You can control when calculation occurs by changing the calculation process to manual calculation. Important: Changing any of the options affects all open workbooks. • Click the File tab, click Options, and then click the Formulas category. In Excel 2007, click the Microsoft Office Button, click Excel Options, and then click the Formulas category • Do one of the following: • To recalculate all dependent formulas every time you make a change to a value, formula, or name, in the Calculation options section, under Workbook Calculation, click Automatic. This is the default calculation setting. • To recalculate all dependent formulas — except data tables — every time you make a change to a value, formula, or name, in the Calculation options section, under Workbook Calculation, click Automatic except for data tables.