What if excel definition

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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.

For example, you can do What-If Analysis to build two budgets that each assumes a certain level of revenue. Or, you can specify a result that you want a formula to produce, and then determine what sets of values will produce that result. Excel provides several different tools to help you perform the type of analysis that fits your needs.

Note that this is just an overview of those tools. There are links to help topics for each one specifically.

What-If Analysis is the process of changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet.

Three kinds of What-If Analysis tools come with Excel: Scenarios, Goal Seek, and Data Tables. Scenarios and Data tables take sets of input values and determine possible results. A Data Table works with only one or two variables, but it can accept many different values for those variables. A Scenario can have multiple variables, but it can only accommodate up to 32 values. Goal Seek works differently from Scenarios and Data Tables in that it takes a result and determines possible input values that produce that result.

In addition to these three tools, you can install add-ins that help you perform What-If Analysis, such as the Solver add-in. The Solver add-in is similar to Goal Seek, but it can accommodate more variables. You can also create forecasts by using the fill handle and various commands that are built into Excel.

For more advanced models, you can use the Analysis ToolPak add-in.

A Scenario is a set of values that Excel saves and can substitute automatically in cells on a worksheet. You can create and save different groups of values on a worksheet and then switch to any of these new scenarios to view different results.

For example, suppose you have two budget scenarios: a worst case and a best case. You can use the Scenario Manager to create both scenarios on the same worksheet, and then switch between them. For each scenario, you specify the cells that change and the values to use for that scenario. When you switch between scenarios, the result cell changes to reflect the different changing cell values.

1. Changing cells

2. Result cell

1. Changing cells

2. Result cell

If several people have specific information in separate workbooks that you want to use in scenarios, you can collect those workbooks and merge their scenarios.

After you have created or gathered all the scenarios that you need, you can create a Scenario Summary Report that incorporates information from those scenarios. A scenario report displays all the scenario information in one table on a new worksheet.

Note: Scenario reports are not automatically recalculated. If you change the values of a scenario, those changes will not show up in an existing summary report. Instead, you must create a new summary report.

If you know the result that you want from a formula, but you’re not sure what input value the formula requires to get that result, you can use the Goal Seek feature. For example, suppose that you need to borrow some money. You know how much money you want, how long a period you want in which to pay off the loan, and how much you can afford to pay each month. You can use Goal Seek to determine what interest rate you must secure in order to meet your loan goal.

Cells B1, B2, and B3 are the values for the loan amount, term length, and interest rate.

Cell B4 displays the result of the formula =PMT(B3/12,B2,B1).

Note: Goal Seek works with only one variable input value. If you want to determine more than one input value, for example, the loan amount and the monthly payment amount for a loan, you should instead use the Solver add-in. For more information about the Solver add-in, see the section Prepare forecasts and advanced business models, and follow the links in the See Also section.

If you have a formula that uses one or two variables, or multiple formulas that all use one common variable, you can use a Data Table to see all the outcomes in one place. Using Data Tables makes it easy to examine a range of possibilities at a glance. Because you focus on only one or two variables, results are easy to read and share in tabular form. If automatic recalculation is enabled for the workbook, the data in Data Tables immediately recalculates; as a result, you always have fresh data.

Cell B3 contains the input value.
Cells C3, C4, and C5 are values Excel substitutes based on the value entered in B3.

A Data Table cannot accommodate more than two variables. If you want to analyze more than two variables, you can use Scenarios. Although it is limited to only one or two variables, a Data Table can use as many different variable values as you want. A Scenario can have a maximum of 32 different values, but you can create as many scenarios as you want.

If you want to prepare forecasts, you can use Excel to automatically generate future values that are based on existing data, or to automatically generate extrapolated values that are based on linear trend or growth trend calculations.

You can fill in a series of values that fit a simple linear trend or an exponential growth trend by using the fill handle or the Series command. To extend complex and nonlinear data, you can use worksheet functions or the regression analysis tool in the Analysis ToolPak Add-in.

Although Goal Seek can accommodate only one variable, you can project backward for more variables by using the Solver add-in. By using Solver, you can find an optimal value for a formula in one cell—called the target cell—on a worksheet.

Solver works with a group of cells that are related to the formula in the target cell. Solver adjusts the values in the changing cells that you specify—called the adjustable cells—to produce the result that you specify from the target cell formula. You can apply constraints to restrict the values that Solver can use in the model, and the constraints can refer to other cells that affect the target cell formula.

Need more help?

You can always ask an expert in the Excel Tech Community or get support in the Answers community.

What-If Analysis

What-If Analysis in Excel allows you to try out different values (scenarios) for formulas. The following example helps you master what-if analysis quickly and easily.

Assume you own a book store and have 100 books in storage. You sell a certain % for the highest price of $50 and a certain % for the lower price of $20.

If you sell 60% for the highest price, cell D10 calculates a total profit of 60 * $50 + 40 * $20 = $3800.

Create Different Scenarios

But what if you sell 70% for the highest price? And what if you sell 80% for the highest price? Or 90%, or even 100%? Each different percentage is a different scenario. You can use the Scenario Manager to create these scenarios.

Note: You can simply type in a different percentage into cell C4 to see the corresponding result of a scenario in cell D10. However, what-if analysis enables you to easily compare the results of different scenarios. Read on.

1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Scenario Manager.

The Scenario Manager dialog box appears.

3. Add a scenario by clicking on Add.

4. Type a name (60% highest), select cell C4 (% sold for the highest price) for the Changing cells and click on OK.

5. Enter the corresponding value 0.6 and click on OK again.

6. Next, add 4 other scenarios (70%, 80%, 90% and 100%).

Finally, your Scenario Manager should be consistent with the picture below:

Note: to see the result of a scenario, select the scenario and click on the Show button. Excel will change the value of cell C4 accordingly for you to see the corresponding result on the sheet.

Scenario Summary

To easily compare the results of these scenarios, execute the following steps.

1. Click the Summary button in the Scenario Manager.

2. Next, select cell D10 (total profit) for the result cell and click on OK.

Conclusion: if you sell 70% for the highest price, you obtain a total profit of $4100, if you sell 80% for the highest price, you obtain a total profit of $4400, etc. That’s how easy what-if analysis in Excel can be.

Goal Seek

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? You can use Excel’s Goal Seek feature to find the answer.

1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Goal Seek.

The Goal Seek dialog box appears.

3. Select cell D10.

4. Click in the ‘To value’ box and type 4700.

5. Click in the ‘By changing cell’ box and select cell C4.

Result. You need to sell 90% of the books for the highest price to obtain a total profit of exactly $4700.

Note: visit our page about Goal Seek for more examples and tips.

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IF function – nested formulas and avoiding pitfalls

The IF function allows you to make a logical comparison between a value and what you expect by testing for a condition and returning a result if True or False.

=IF(Something is True, then do something, otherwise do something else)

So an IF statement can have two results. The first result is if your comparison is True, the second if your comparison is False.

IF statements are incredibly robust, and form the basis of many spreadsheet models, but they are also the root cause of many spreadsheet issues. Ideally, an IF statement should apply to minimal conditions, such as Male/Female, Yes/No/Maybe, to name a few, but sometimes you might need to evaluate more complex scenarios that require nesting* more than 3 IF functions together.

* “Nesting” refers to the practice of joining multiple functions together in one formula.

Use the IF function, one of the logical functions, to return one value if a condition is true and another value if it’s false.

IF(logical_test, value_if_true, [value_if_false])

The condition you want to test.

The value that you want returned if the result of logical_test is TRUE.

The value that you want returned if the result of logical_test is FALSE.

While Excel will allow you to nest up to 64 different IF functions, it’s not at all advisable to do so. Why?

Multiple IF statements require a great deal of thought to build correctly and make sure that their logic can calculate correctly through each condition all the way to the end. If you don’t nest your formula 100% accurately, then it might work 75% of the time, but return unexpected results 25% of the time. Unfortunately, the odds of you catching the 25% are slim.

Multiple IF statements can become incredibly difficult to maintain, especially when you come back some time later and try to figure out what you, or worse someone else, was trying to do.

If you find yourself with an IF statement that just seems to keep growing with no end in sight, it’s time to put down the mouse and rethink your strategy.

Let’s look at how to properly create a complex nested IF statement using multiple IFs, and when to recognize that it’s time to use another tool in your Excel arsenal.

Examples

Following is an example of a relatively standard nested IF statement to convert student test scores to their letter grade equivalent.

97,»A+»,IF(B2>93,»A»,IF(B2>89,»A-«,IF(B2>87,»B+»,IF(B2>83,»B»,IF(B2>79,»B-«,IF(B2>77,»C+»,IF(B2>73,»C»,IF(B2>69,»C-«,IF(B2>57,»D+»,IF(B2>53,»D»,IF(B2>49,»D-«,»F»))))))))))))» loading=»lazy»>

This complex nested IF statement follows a straightforward logic:

If the Test Score (in cell D2) is greater than 89, then the student gets an A

If the Test Score is greater than 79, then the student gets a B

If the Test Score is greater than 69, then the student gets a C

If the Test Score is greater than 59, then the student gets a D

Otherwise the student gets an F

This particular example is relatively safe because it’s not likely that the correlation between test scores and letter grades will change, so it won’t require much maintenance. But here’s a thought – what if you need to segment the grades between A+, A and A- (and so on)? Now your four condition IF statement needs to be rewritten to have 12 conditions! Here’s what your formula would look like now:

It’s still functionally accurate and will work as expected, but it takes a long time to write and longer to test to make sure it does what you want. Another glaring issue is that you’ve had to enter the scores and equivalent letter grades by hand. What are the odds that you’ll accidentally have a typo? Now imagine trying to do this 64 times with more complex conditions! Sure, it’s possible, but do you really want to subject yourself to this kind of effort and probable errors that will be really hard to spot?

Tip: Every function in Excel requires an opening and closing parenthesis (). Excel will try to help you figure out what goes where by coloring different parts of your formula when you’re editing it. For instance, if you were to edit the above formula, as you move the cursor past each of the ending parentheses “)”, its corresponding opening parenthesis will turn the same color. This can be especially useful in complex nested formulas when you’re trying to figure out if you have enough matching parentheses.

Additional examples

Following is a very common example of calculating Sales Commission based on levels of Revenue achievement.

15000,20%,IF(C9>12500,17.5%,IF(C9>10000,15%,IF(C9>7500,12.5%,IF(C9>5000,10%,0)))))» loading=»lazy»>

This formula says IF(C9 is Greater Than 15,000 then return 20%, IF(C9 is Greater Than 12,500 then return 17.5%, and so on.

While it’s remarkably similar to the earlier Grades example, this formula is a great example of how difficult it can be to maintain large IF statements – what would you need to do if your organization decided to add new compensation levels and possibly even change the existing dollar or percentage values? You’d have a lot of work on your hands!

Tip: You can insert line breaks in the formula bar to make long formulas easier to read. Just press ALT+ENTER before the text you want to wrap to a new line.

Here is an example of the commission scenario with the logic out of order:

5000,10%,IF(C9>7500,12.5%,IF(C9>10000,15%,IF(C9>12500,17.5%,IF(C9>15000,20%,0)))))» loading=»lazy»>

Can you see what’s wrong? Compare the order of the Revenue comparisons to the previous example. Which way is this one going? That’s right, it’s going from bottom up ($5,000 to $15,000), not the other way around. But why should that be such a big deal? It’s a big deal because the formula can’t pass the first evaluation for any value over $5,000. Let’s say you’ve got $12,500 in revenue – the IF statement will return 10% because it is greater than $5,000, and it will stop there. This can be incredibly problematic because in a lot of situations these types of errors go unnoticed until they’ve had a negative impact. So knowing that there are some serious pitfalls with complex nested IF statements, what can you do? In most cases, you can use the VLOOKUP function instead of building a complex formula with the IF function. Using VLOOKUP, you first need to create a reference table:

This formula says to look for the value in C2 in the range C5:C17. If the value is found, then return the corresponding value from the same row in column D.

Similarly, this formula looks for the value in cell B9 in the range B2:B22. If the value is found, then return the corresponding value from the same row in column C.

Note: Both of these VLOOKUPs use the TRUE argument at the end of the formulas, meaning we want them to look for an approxiate match. In other words, it will match the exact values in the lookup table, as well as any values that fall between them. In this case the lookup tables need to be sorted in Ascending order, from smallest to largest.

VLOOKUP is covered in much more detail here, but this is sure a lot simpler than a 12-level, complex nested IF statement! There are other less obvious benefits as well:

VLOOKUP reference tables are right out in the open and easy to see.

Table values can be easily updated and you never have to touch the formula if your conditions change.

If you don’t want people to see or interfere with your reference table, just put it on another worksheet.

Did you know?

There is now an IFS function that can replace multiple, nested IF statements with a single function. So instead of our initial grades example, which has 4 nested IF functions:

It can be made much simpler with a single IFS function:

The IFS function is great because you don’t need to worry about all of those IF statements and parentheses.

Note: This feature is only available if you have a Microsoft 365 subscription. If you are a Microsoft 365subscriber, make sure you have the latest version of Office.

Need more help?

You can always ask an expert in the Excel Tech Community or get support in the Answers community.

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What-If Analysis in Excel

What is a What-If Analysis in Excel?

What-If Analysis in Excel is a tool that helps us create different models, scenarios, and Data Tables. This article will look at the ways of using What-If Analysis.

We have three parts of What-If Analysis in Excel. They are as follows:

Scenario Manager
Goal Seek in Excel
Data Table in Excel

#1 Scenario Manager in What-If Analysis

As a business head, it is important to know the different scenarios of your future project. Based on the scenarios, the business head will make decisions. For example, you are going to undertake one of the important projects. You have done your homework and listed all the possible expenditures from your end, and below is the list of all your expenses.

The expected cash flow from this project is $75 million, which is in cell C2. Total expenses comprise all your fixed and variable expenses, the total cost is $57.45 million in cell C12. Total profit is $17.55 million in cell C14, and profit % is 23.40% of your cash inflow.

It is the basic scenario of your project. Now, you need to know the profit scenario if some of your expenses increase or decrease.

Scenario 1

Scenario 2

The “Project Cost” to be at $20 million
The “Labor Daily Wages” to be at $5 million
The “Operating Cost” is to be at $3.5 million

Now, you have listed out all the scenarios in the form. Based on these scenarios, you need to create a table about how it will impact your profit and profit %.

To create What-If Analysis scenarios, follow the below steps.

Go to DATA > What-If Analysis > Scenario Manager.

Once you click “Scenario Manager,” it will show you below the dialog box.

Click on “Add.” Then, give “Scenario name.”

In changing cells, select the first scenario changes you have listed out. The changes are Project License (cell C10) at $15 million, Raw Material Cost (cell C7) at $11 million, and Other Expenses (cell C11) at $4.5 million. Mention these three cells here.

Click on “OK.” It will ask you to mention the new values as listed in scenario 1.

Do not click on “OK” but click on “OK Add.” It will save this scenario for you.

Now, it will ask you to create one more scenario. As we listed in scenario 2, make the changes. This time we need to change Project Cost (C10), Labour Cost (C8), and Operating Cost (C9).

Now, add new values here.

Now click on “OK.” It will show all the scenarios we have created.

Click on “Scenario summary.” It will ask you which result cells you want to change. Here, we need to change the Total Expense Cell (C12), Total Profit Cell (C14), and Profit % cell (C16).

Click on “OK.” It will create a summary report for you in the new worksheet.

Total Excel has created three scenarios even though we have supplied only two scenario changes because Excel will show existing reports as one scenario.

From this table, we can easily see the impact of changes in pour profit %.

#2 Goal Seek in What-If Analysis

Now, we know the Scenario Manager’s advantage. What-if-Analysis Goal Seek can tell you what you must do to achieve the target.

Andrew is a class 10th student. His target is to achieve an average score of 85 in the final exam. He has already completed 5 exams and left with only 1 exam. Therefore, in the completed 5 exams.

To calculate the current average, apply the average formula in the B7 cell.

The current average is 82.2.

Andrew’s GOAL is 85. His current average is 82.2. He is short by 3.8 with one exam.

Now, the question is how much he has to score in the final exam to eventually get an overall average of 85. It can be found by the What-If Analysis GOAL SEEK tool.

Step 1: Go to DATA > What-If Analysis > Goal Seek.

Step 2: It will show you below the dialog box.

Step 3: Here, we need to set the cell first. “Set cell” is nothing but which cell we need for the final result, i.e., our overall average cell (B7). Next is “To value.” Again, Andrew’s overall average GOAL is nothing but for what value we need to set the cell (85).

The next and final step is changing which cell you want to see the impact on. So, we need to change cell B6, the cell for the final subject’s score.

Step 4: Click on “OK.” Excel will take a few seconds to complete the process, but it eventually shows the result like the one below.

Now, we have our results here. To get an overall average of 85, Andrew has to score 99 in the final exam.

#3 Data Table in What-If Analysis

Assume you are selling 1,000 products at ₹15, your total anticipated expense is ₹12,500, and your profit is ₹2,500.

You are not happy with the profit you are getting. Your anticipated profit is ₹7,500. You have decided to increase your per-unit price to increase your profit, but you do not know how much you need to increase.

Data tables can help you. Create a table below.

Now, in the cell, F1 links to the “Total Profit” cell, B6.

Step 1: Select the newly created table.

Step 2: Go to DATA > What-if Analysis > Data Table.

Step 3: Now, you will see below dialog box.

Step 4: Since we are showing the result vertically, leave the ”Row input cell.” In the “Column input cell,” select cell B2, which is the original selling price.

Step 5: Click on “OK” to get the results. It will list out profit numbers in the new table.

So, we have our Data Table ready. To profit from ₹7,500, you need to sell at ₹20 per unit.

Things to Remember

The What-If Analysis data table can be performed with two variable changes. Refer to our article on What-If Analysis two-variable Data Table.
What-If Analysis Goal Seek takes a few seconds to perform calculations.
What-If Analysis Scenario Manager can give a summary with input numbers and current values together.

#1 Scenario Manager in What-If Analysis

It is the basic scenario of your project. Now, you need to know the profit scenario if some of your expenses increase or decrease.

Scenario 1

In a general case scenario, you have estimated the “Project License” cost to be $10 million, but you are sure anticipating it to be $15 million
Raw material costs to be increased by $2.5 million
Other expensesOther expenses comprise all the non-operating costs incurred for the supporting business operations. Such payments like rent, insurance and taxes have no direct connection with the mainstream business activities.read more to be decreased by 50 thousand.

Scenario 2

The “Project Cost” to be at $20 million
The “Labor Daily Wages” to be at $5 million
The “Operating Cost” is to be at $3.5 million

Now, you have listed out all the scenarios in the form. Based on these scenarios, you need to create a table about how it will impact your profit and profit %.

To create What-If Analysis scenarios, follow the below steps.

Go to DATA > What-If Analysis > Scenario Manager.
Once you click “Scenario Manager,” it will show you below the dialog box.
Click on “Add.” Then, give “Scenario name.”
In changing cells, select the first scenario changes you have listed out. The changes are Project License (cell C10) at $15 million, Raw Material Cost (cell C7) at $11 million, and Other Expenses (cell C11) at $4.5 million. Mention these three cells here.
Click on “OK.” It will ask you to mention the new values as listed in scenario 1.
Do not click on “OK” but click on “OK Add.” It will save this scenario for you.
Now, it will ask you to create one more scenario. As we listed in scenario 2, make the changes. This time we need to change Project Cost (C10), Labour Cost (C8), and Operating Cost (C9).
Now, add new values here.
Now click on “OK.” It will show all the scenarios we have created.
Click on “Scenario summary.” It will ask you which result cells you want to change. Here, we need to change the Total Expense Cell (C12), Total Profit Cell (C14), and Profit % cell (C16).
Click on “OK.” It will create a summary report for you in the new worksheet.

Total Excel has created three scenarios even though we have supplied only two scenario changes because Excel will show existing reports as one scenario.

From this table, we can easily see the impact of changes in pour profit %.

#2 Goal Seek in What-If Analysis

Now, we know the Scenario Manager’s advantage. What-if-Analysis Goal Seek can tell you what you must do to achieve the target.

Andrew is a class 10th student. His target is to achieve an average score of 85 in the final exam. He has already completed 5 exams and left with only 1 exam. Therefore, in the completed 5 exams.

To calculate the current average, apply the average formula in the B7 cell.

The current average is 82.2.

Andrew’s GOAL is 85. His current average is 82.2. He is short by 3.8 with one exam.

Now, the question is how much he has to score in the final exam to eventually get an overall average of 85. It can be found by the What-If Analysis GOAL SEEK tool.

Step 1: Go to DATA > What-If Analysis > Goal Seek.

Step 2: It will show you below the dialog box.

Step 3: Here, we need to set the cell first. “Set cell” is nothing but which cell we need for the final result, i.e., our overall average cell (B7). Next is “To value.” Again, Andrew’s overall average GOAL is nothing but for what value we need to set the cell (85).

The next and final step is changing which cell you want to see the impact on. So, we need to change cell B6, the cell for the final subject’s score.

Step 4: Click on “OK.” Excel will take a few seconds to complete the process, but it eventually shows the result like the one below.

Now, we have our results here. To get an overall average of 85, Andrew has to score 99 in the final exam.

#3 Data Table in What-If Analysis

We have already seen two wonderful techniques under What-If Analysis in Excel. First, the Data Table can create different scenario tables based on the variable change. We have two kinds of Data Tables here: one variable Data Table and a “Two-variable data tableA two-variable data table helps analyze how two different variables impact the overall data table. In simple terms, it helps determine what effect does changing the two variables have on the result.read more.” This article will show you One variable data table in ExcelOne variable data table in excel means changing one variable with multiple options and getting the results for multiple scenarios. The data inputs in one variable data table are either in a single column or across a row.read more.

Assume you are selling 1,000 products at ₹15, your total anticipated expense is ₹12,500, and your profit is ₹2,500.

Data tables can help you. Create a table below.

Now, in the cell, F1 links to the “Total Profit” cell, B6.

Step 1: Select the newly created table.

Step 2: Go to DATA > What-if Analysis > Data Table.

Step 3: Now, you will see below dialog box.

Step 4: Since we are showing the result vertically, leave the ”Row input cell.” In the “Column input cell,” select cell B2, which is the original selling price.

Step 5: Click on “OK” to get the results. It will list out profit numbers in the new table.

So, we have our Data Table ready. To profit from ₹7,500, you need to sell at ₹20 per unit.

Things to Remember

The What-If Analysis data table can be performed with two variable changes. Refer to our article on What-If Analysis two-variable Data Table.
What-If Analysis Goal Seek takes a few seconds to perform calculations.
What-If Analysis Scenario Manager can give a summary with input numbers and current values together.

What-If Analysis Scenario Manager

Scenario Manager is one of the What-if Analysis tools in Excel. Scenario Manager is useful in a case where you have more than two variables in the sensitivity analysis. Scenario Manager creates scenarios for each set of the input values for the variables under consideration. Scenarios help you to explore a set of possible outcomes, supporting the following:

Varying as many as 32 input sets.
Merging the scenarios from several different worksheets or workbooks.

If you want to analyze more than 32 input sets, and the values represent only one or two variables, you can use Data Tables.

Initial Values for Scenarios

Before you create several different scenarios, you need to define a set of initial values on which the scenarios will be based. Consider an example of a company that wants to buy Metals for their needs. Due to the scarcity of funds, the company wants to understand how much cost will happen for different buying possibilities.

In these cases, we can use the scenario manager for applying different scenarios to understand the results and make the decision accordingly. Now below are the following steps for setting up the initial values for Scenarios:

Step 1: Define the cells that contain the input values.

Step 2: Name the cells Metals_name and Cost.

Step 3: Define the cells that contain the results.

Step 4: Name the result cell Total_cost.

Step 5: place the formula in the result cell.

Step 6: Below is the created table.

To create an analysis report with Scenario Manager, follow the following steps, such as:

Step 1: Click the Data tab.

Step2: Go to the What-If Analysis button and click on the Scenario Manager from the dropdown list.

Step 3: Now a scenario manager dialog box appears, click on the Add button to create a scenario.

Step 4: Create the scenario, name the scenario, enter the value for each changing input cell for that scenario, and then click the Ok button.

Step 5: Now, B3, B4, B5, B6, and B7 appear in the cells box.

Step 6: Now, change the value of B3to 500 and click the Add button.

Step 7: After clicking on the Add button, the add scenario dialog box appears again.

In the scenario name box, create scenario 2.
Select the prevent changes.
And click on the Ok

Step 8: Again appears scenario values box with the changed value of B3 cell.

Step 9: Change the value of B5 to 20000 and click the Ok button.

Step 10: Similarly, create Scenario 3 and click the Ok button.

Step 11: Again, appears scenario values box with a changed value of the B5 cell.

Step 12: Change the value of B7 to 10000 and click the Ok button.

The Scenario Manager Dialog box appears. In the box under Scenarios, You will find the names of all the scenarios that you have created.

Step 13: Now, click on the Summary button. The Scenario Summary dialog box appears.

Excel provides two types of Scenario Summary reports:

Scenario summary.
Scenario PivotTable report.

Step 14: Select Scenario summary under Report type and click Ok. Scenario Summary report appears in a new worksheet. You will get the following Scenario summary report.

You can observe the following in the Scenario Summary report:

Changing Cells: Enlists all the cells used as changing cells.
Result Cells: Displays the result cell specified.
Current Values: It is the first column and enlists the values of that scenario selected in the Scenario Manager Dialog box before creating the summary report.
For all the scenarios you have created, the changing cells will be highlighted in gray.
In the $C$9 row, the result values for each scenario will be displayed.

What-If Analysis Goal Seek

Goal Seek is a What-If Analysis tool that helps you to find the input value that results in a target value that you want. Goal Seek requires a formula that uses the input value to give the result in the target value. Then, by varying the formula’s input value, Goal Seek tries to solve the input value.

Goal Seek works only with one variable input value. If you have more than one input value to be determined, you have to use the Solver add-in. Below are the following steps to use the Goal Seek feature in Excel.

Step 1: On the Data tab, go What-If Analysis and click on the Goal Seek option.

Step 2: The Goal Seek dialog box appears.

Step 3: Type C9 in the Set cell box. This box is the reference for the cell that contains the formula that you want to resolve.

Step 4: Type 57000 in the To value box. Here, you get the formula result.

Step 5: Type B9 in the By changing cell box. This box has the reference of the cell that contains the value you want to adjust.

Step 6: This cell that the formula must reference goal Seek changes in the cell that you specified in the Set cell box. Click Ok.

Step 7: Goal Seek box produces the following result.

As you can observe, Goal Seek found the solution using B9, and it returns 0 in the B9 cell because the target value and current value are the same.

What-If Analysis Data Tables

With a Data Table in Excel, you can easily vary one or two inputs and perform a What-if analysis. A Data Table is a range of cells where you can change values in some of the cells and answer different answers to a problem. There are two types of Data Tables, such as:

One-variable data tables
Two-variable data tables

If you have more than two variables in your analysis problem, you need to use the Excel Scenario Manager Tool.

One-variable Data Tables

A one-variable Data Table can be used to see how different values of one variable in one or more formulas will change those formulas’ results. In other words, with a one-variable Data Table, you can determine how changing one input changes any number of outputs. Below is an example of creating a one-variable data table.

A good example of a data table employs the PMT function with different loan amounts and interest rates to calculate the loan.

There is a loan of 1 00,000 for a tenure of 5 years. You want to know the monthly payments (EMI) for varied interest rates. You also want to know the amount of interest and Principal that is paid in the second year.

Step 1: Create the required table.

Assume that the interest rate is 10%.
List all the required values.
Name the cells containing the values.
Set the calculation for EMI, Cumulative Interest and Cumulative Principal with the Excel functions PMT, CUMIPMT and CUMPRINC, respectively.
Below is the created table.

Step 2: Type the list of interest rate values that you want to substitute in the input cell.

As you observe, there is an empty row above the Interest Rate values. This row is for the formulas.

Step 3: Type the first function (PMT) in the cell one row above and one cell to the right of the column of values. Type the other functions (CUMIPMT and CUMPRINC) in the cells to the first function’s right.

Step 4: The Data Table looks as given below.

Step 5: Select the range of cells that contains the formulas and values that you want to substitute, E2:H13.

Step 6: Go to the Data tab, select What-if Analysis and click on the Data Table tool in the dropdown list.

Step 7: Data Table dialog box appears.

Click in the Column input cell box.
And click on the Interest_Rate cell, which is C2.

You can see that the Column input cell is taken as $C$2.

Step 8: Click on the Ok button.

The Data Table is filled with the calculated results for each input value.

Two-variable Data Tables

A two-variable Data Table can be used to see how different values of two variables in a formula will change that formula’s results. In other words, with a two-variable Data Table, you can determine how changing two inputs changes a single output.

For example, a loan of 100000, and you want to know how different combinations of interest rates will affect the monthly payment.

Step 1: Create the following table.

Step 2: Now create the Data Table

Write =EMI in F2 cell.
Type the first list of input values, i.e., interest rates, down the column F, starting with the cell below the formula, i.e., F3.
Type the second list of input values, i.e., number of payments across row 2, starting with the cell to the right of the formula, i.e., G2.
The Data Table looks as follows.

Step 3: Select the range of cells that contains the formula and the two sets of values that you want to substitute, i.e., F2:L13.

Step 4: Go to the Data tab, click What-if Analysis and select Data Table from the dropdown list.

Step 5: Data Table dialog box appears.

Step 6: Click in the Row input cell box.

Click on the NPER cell, which is C3.
Again, click in the Column input cell box.
Click the Interest_Rate cell, which is C2.

You will see that the Row input cell is taken as $C$3, and the Column input cell is taken as $C$2.

Step 7: Click on the Ok button.

The Data Table gets filled with the calculated results for each combination of the two input values.

Data Table Calculations

Data Tables are recalculated each time the worksheet containing them is recalculated, even if they have not changed.

To speed up the calculations in a worksheet that contains a Data Table, you need to change the calculation options to Automatically Recalculate the worksheet but not the Data Tables.

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Create Different Scenarios | Scenario Summary | Goal Seek

What-If Analysis in Excel allows you to try out different values (scenarios) for formulas. The following example helps you master what-if analysis quickly and easily.

Assume you own a book store and have 100 books in storage. You sell a certain % for the highest price of $50 and a certain % for the lower price of $20.

If you sell 60% for the highest price, cell D10 calculates a total profit of 60 * $50 + 40 * $20 = $3800.

Create Different Scenarios

1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Scenario Manager.

The Scenario Manager dialog box appears.

3. Add a scenario by clicking on Add.

4. Type a name (60% highest), select cell C4 (% sold for the highest price) for the Changing cells and click on OK.

5. Enter the corresponding value 0.6 and click on OK again.

6. Next, add 4 other scenarios (70%, 80%, 90% and 100%).

Finally, your Scenario Manager should be consistent with the picture below:

Note: to see the result of a scenario, select the scenario and click on the Show button. Excel will change the value of cell C4 accordingly for you to see the corresponding result on the sheet.

Scenario Summary

To easily compare the results of these scenarios, execute the following steps.

1. Click the Summary button in the Scenario Manager.

2. Next, select cell D10 (total profit) for the result cell and click on OK.

Result:

Goal Seek

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? You can use Excel’s Goal Seek feature to find the answer.

1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Goal Seek.

The Goal Seek dialog box appears.

3. Select cell D10.

4. Click in the ‘To value’ box and type 4700.

5. Click in the ‘By changing cell’ box and select cell C4.

6. Click OK.

Result. You need to sell 90% of the books for the highest price to obtain a total profit of exactly $4700.

Note: visit our page about Goal Seek for more examples and tips.

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See Also

Need more help?

What-If Analysis

Create Different Scenarios

Scenario Summary

Goal Seek

IF function – nested formulas and avoiding pitfalls

Examples

Additional examples

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What-If Analysis in Excel

What is a What-If Analysis in Excel?

Table of contents

#1 Scenario Manager in What-If Analysis

#2 Goal Seek in What-If Analysis

#3 Data Table in What-If Analysis

Things to Remember

Recommended Articles

Table of contents

#1 Scenario Manager in What-If Analysis

#2 Goal Seek in What-If Analysis

#3 Data Table in What-If Analysis

Things to Remember

Recommended Articles

What-If Analysis Scenario Manager

What-If Analysis Goal Seek

What-If Analysis Data Tables

Create Different Scenarios

Scenario Summary

Goal Seek