What-if Analysis Tool in Excel In Excel, What-if analysis is a process of changing the value of the cells to see how the changes will affect the outcome. You can use different sets of values to explore all the various leads to one or more formulas. Nowadays, What-if Analysis in Excel is used by every data analyst and especially management professionals to make better, faster and more accurate decisions based on the data. What-if analysis tool is used in many situations, like: • To propose different budgets based on revenue. • To predict the future values based on the given historical values. • If you expect a certain value due to a formula, you can find different sets of input values that produce the desired result. To enable the what-if analysis tool you have to go to the Data menu tab and click on the What-If Analysis option.
Goal Seek is a What-If Analysis tool which helps you to find the input value which results in a target value that you desire. Goal Seek requires a formula which uses the input value to give the result in the target value. Then, by varying the formula's input value, Goal Seek tries to unravel the input value.
Goal Seek in Advance excel is very useful if you want to know the formula's result but you are not sure which input value of the formula is to be used to get the desired result. For example, if you want to borrow a loan and know the loan amount, tenure of loan and the EMI that you have to pay, you can use Goal Seek to seek out the rate of interest at which you'll avail the loan. Goal Seek works only with one variable input value.