Round-robin T-SQL problem with a twist

I have a table where I need to populate values, which are incremented using given step size. In addition I also have a notion of range, so that certain number of steps will fit inside the range (not necessarily evenly). Once the end of range is reached, a round-robin process needs to happen. The twist is that I also need to count how many times I did the round-robin and, once the given max of round-robins is reached, I need to sort of reset the count of my round-robins. Since this is confusing, here is an illustration.

Let's create and populate a simple table:

IF OBJECT_ID('tempdb..#mytable') IS NOT NULL DROP TABLE   
tempdb.dbo.#mytable

CREATE TABLE #mytable (
id INT IDENTITY(1,1),
iteration INT,
step INT
)

INSERT #mytable
DEFAULT VALUES
GO 20

Now let's declare some variables and use them to update data in our table (note that the @max_iterations variable is not used, because I don't know how to leverage it and why I am asking my question):

DECLARE @step_size              INT = 7,
        @max_iteration_range    INT = 40,
        @max_iterations         INT = 2

UPDATE  #mytable
SET     iteration = (id*@step_size)/@max_iteration_range, 
        step = (id*@step_size)%@max_iteration_range

SELECT * FROM #mytable

Here is the resulting output:

id          iteration   step
    ----------- ----------- -----------
    1           0           7
    2           0           14
    3           0           21
    4           0           28
    5           0           35
    6           1           2
    7           1           9
    8           1           16
    9           1           23
    10          1           30
    11          1           37
    12          2           4
    13          2           11
    14          2           18
    15          2           25
    16          2           32
    17          2           39
    18          3           6
    19          3           13
    20          3           20

The problem I am

Once again, thank you to Vladimir for providing the formula!
The correct way to accomplish what I need is this:

DECLARE @step_size              INT = 7,
        @max_iteration_range    INT = 40,
        @max_iterations         INT = 2

UPDATE  #mytable
SET     
        iteration = ((id*@step_size)/@max_iteration_range) % (@max_iterations+1),
        step =       (id*@step_size)%@max_iteration_range

SELECT * FROM #mytable

StackExchange Database Administrators Q#111117, answer score: 3