If cell entries are changed , the formula will automatically recalculate the value's and insert the result in the cell containing the formula
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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.