Run series of math formulas with VBA for list of XY pairs

If I am reading the requirement correctly, you want the minimum distance between two coordinates subject to their being 0.038 units apart. The 0.038 comes from each radius is 0.016 plus a gap of 0.006 between them. This code accomplishes it by brute force.

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Hi dflak,
This is partially correct. I do want to find minimum distance between two coordinates. I.e. the two closest points. But from that I need to calculate the area of an annulus when I use a drill to put a holes at the two closest points. Let's say for example I have point located at (0,0) and one at (1,0). Now the distance between them is 1. Now I use a drillbit and make a hole at (0,0) and (0,1). The radius of the drillbit is 0.25 so I lose 0.25 from the (0,0) and (1,0) so the distance becomes (0+0.25,0) and (1-0.25,0) giving only 0.5 between the two points. Now If I use a drillbit on the hole that has a radius of 0.5, the two holes would touch each other. This would be bad because I need a clearance that changes between the holes. Let say that I need a clearance of 0.3 between the two holes once they are drilled. So I find the two closest points at (0,0) and (1,0), then I drill holes at each point with a radius of 0.25. So same as before the distance between the two holes becomes 0.5, now my clearance is 0.3. So If I find the center point of the 0.5 distance, this gives 0.3/2 clearance. So I am interested in the area between a hole that is 0.25 radius plus the clearance of .15 so I use the formula Area=Pi((radius of outer circle)^2-(radius of inner circle)^2). This is the value I am interested in, the difficulty is, identifying the closest points, then calculating the annulus when both the radius of the hole drilled changes and the clearance requirement between the two holes changes.

I attached a more clear example

Where on the sheet, do you define the size of the drill bit? I think that all I have to do is change my fixed 0.038 to a calculated value.

Here you go. I made a separate sheet to calculate the value.

You tell it the distance you need between holes and the size of the drill bit and it figures out the distance between centers.