Microsoft Office Tutorials and References
In Depth Information
Forecasting with the Goal Seek Command
Click the OK button on the column’s drop-down list or the Custom AutoFilter
dialog box to filter your list.
To see all the data in the list again — to unfilter the list — click the Clear
button on the Data tab.
Forecasting with the Goal Seek Command
In a conventional formula, you provide the raw data and Excel produces the
results. With the Goal Seek command, you declare what you want the results
to be and Excel tells you the raw data you need to produce those results.
The Goal Seek command is useful in analyses when you want the outcome to
be a certain way and you need to know which raw numbers will produce the
outcome that you want.
Figure 5-5 shows a worksheet designed to find out the monthly payment
on a mortgage. With the PMT function, the worksheet determines that the
monthly payment on a $250,000 loan with an interest rate of 6.5 percent
and to be paid over a 30-year period is $1,580.17. Suppose, however, that
the person who calculated this monthly payment determined that he or she
could pay more than $1,580.17 per month? Suppose the person could pay
$1,750 or $2,000 per month. Instead of an outcome of $1,580.17, the person
wants to know how much he or she could borrow if monthly payments —
the outcome of the formula — were increased to $1,750 or $2,000.
To make determinations such as these, you can use the Goal Seek command.
This command lets you experiment with the arguments in a formula to
achieve the results you want. In the case of the worksheet in Figure 5-5, you
can use the Goal Seek command to change the argument in cell C3, the total
amount you can borrow, given the outcome you want in cell C6, $1,750 or
$2,000, the monthly payment on the total amount.
Figure 5-5:
Experimenting with the
Goal Seek
command.
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