How To Use Excel What If Analysis

This was a very simple example of using goal seek in what if analysis.

How to use excel what if analysis. Scenarios data tables and goal seek. The emi calculated rs. You can use goal seek even for more complex models let s take an example of a car loan model. 9 322 which 18 equals exactly to rs. In most general terms what if analysis allows you to test out various scenarios and determine a range of possible.

To use excel s what if analysis tool begin by clicking on the data tab on the ribbon and locating the what if analysis tool button under the data tools section. Or you can specify a result that you want a formula to produce and then determine what. 19 786 is the outgoing amount. However excel s what if analysis function was designed for just such an occasion. The tutorial explains how to use goal seek in excel 2016 2013 and 2010 to get the formula result you want by changing an input value.

You can use what if analysis to estimate your monthly savings that meet your retirement goals find the return rate of an investment plan your budget and so on. Business owners use what if analysis for analyzing different scenarios in excel. For this we must have data of such kind where for a single parameter we would have 2 or more values for comparison. What if analysis in excel is used to test more than one value for a different formula on the basis of multiple scenarios. By using what if analysis tools in excel you can use several different sets of values in one or more formulas to explore all the various results.

A data table is a range of cells in which you can change values in some of the cells and come up with different answers to a problem. What if you want to know how many books you need to sell for the highest price to obtain a total profit of exactly 4700. Excel will reverse calculate and immediately give you the value rs. There are three different tools available in excel to perform what if analysis. Refer to our article on what if analysis two variable data table.

What if analysis is one of the most powerful excel features and one of the least understood. Let s have a look at goal seek function. Click on the what if analysis button and choose scenario manager from the list of options. This has been a guide to what if analysis in excel. For example you can do what if analysis to build two budgets that each assumes a certain level of revenue.