Circularity in Debt Calculations

Here is everything you need to know about Circularity in Debt Calculations and its connection to the fascinating world of circularity.

If you’ve been using Excel to build financial models for any period of time, you’ve probably come across the issue of circular references in debt calculations. Here are a couple of ways of dealing with them:
1. Get around it mathematically e.g. create a working line (not always possible or accurate)
2. Calculate interest on prior period balance (not very accurate)
3. Hard-code interest amount and create macro to recalculate
4. Enable iterative calculations
Circularity in Debt Calculations is covered in detail in the FMI Level 1 Exam Prep Online training course.

This deep dive into Circularity in Debt Calculations concludes our session. Let's keep the dialogue active—share your experiences with circularity.

We've fetched this topic's video from Facebook for your viewing. If you need to download facebook video Circularity in Debt Calculations in mp4 video, simply ask us in the comments section and we’ll make it available.