How To Use Excel What If Analysis

However excel s what if analysis function was designed for just such an occasion.

How to use excel what if analysis. What if analysis scenario manager can give a summary with input numbers and current values together. 9 322 which 18 equals exactly to rs. This was a very simple example of using goal seek in what if analysis. 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. Let s have a look at goal seek function.

Business owners use what if analysis for analyzing different scenarios in excel. Refer to our article on what if analysis two variable data table. Go to the data menu tab and click on the what if analysis option under the forecast section. 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. 19 786 is the outgoing amount.

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. In most general terms what if analysis allows you to test out various scenarios and determine a range of possible. That s how easy what if analysis in excel can be. What if analysis in excel is used to test more than one value for a different formula on the basis of multiple scenarios. 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.

For this we must have data of such kind where for a single parameter we would have 2 or more values for comparison. 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. 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. For example you can do what if analysis to build two budgets that each assumes a certain level of revenue. Excel will reverse calculate and immediately give you the value rs.

Or you can specify a result that you want a formula to produce and then determine what. On the data tab in the forecast group click what if analysis. What if analysis is one of the most common processes that data analysts managers or excel users tend to use these days for advanced business analysis. You can use goal seek even for more complex models let s take an example of a car loan model. What if analysis goal seek takes a few seconds to perform calculations.