A novel iterative method of generating three-plane, phase-only computer-generated holograms is presented. It is based on the iterative Fresnel ping-pong two-plane algorithm. A modification is introduced to extend the method for three planes, i.e., two object planes and a hologram itself. The described method enables the design of low-noise and high-efficiency phase-only holograms using a numerical Fresnel propagation algorithm. The source method is described, followed by the modified algorithm. Numerical simulation results and algorithm parameters are discussed, followed by a discussion of the method limitations.