Goal Seek, A popular What-IF Analisys in Spreadsheet

 

Goal Seek is a feature in spreadsheets like Excel and Google Sheets that allows you to find the input value necessary to achieve a desired result or output value in a formula. It works by changing a single input value and recalculating the formula until the desired result is achieved.

Goal Seek is a feature that is available in many spreadsheet software programs, including Microsoft Excel, Google Sheets, LibreOffice Calc, and Apple Numbers. However, not all spreadsheet software programs may have the Goal Seek feature, and the process of using Goal Seek may differ slightly between different programs.

For example, in LibreOffice Calc, the Goal Seek feature is available under the "Tools" menu, and in Apple Numbers, the feature is available under the "Data" menu. Additionally, some spreadsheet software programs may have similar features with different names or different interfaces that achieve the same result as Goal Seek.

How To Use Goal Seek

Mostly, Goal Seek is a useful tool in spreadsheets for finding the necessary input value to achieve a desired output value, which can save time and effort in financial analysis and planning.

For example: Let's say you want to determine the sales volume required to achieve a profit of $10,000. You have a formula that calculates profit based on sales volume and other factors. You can use Goal Seek to determine the required sales volume.

Or, for another example: Let's say you want to determine the number of units you need to sell to reach a revenue target of $50,000. You have a formula that calculates revenue based on units sold and price per unit. You can use Goal Seek to determine the required units sold.

Here are the steps to use Goal Seek in Excel, we will use it to solve the first example:

·         Enter the formula you want to use in a cell.

·         Enter the desired output value in another cell.

·         Click on the "Data" tab in the Excel ribbon and select "What-If Analysis" -> "Goal Seek."

·         In the Goal Seek dialog box, enter the cell reference for the cell containing the formula you want to use in the "Set cell" field.

·         Enter the desired output value in the "To value" field.

·         Enter the cell reference for the cell containing the input value you want to change in the "By changing cell" field.

·         Click "OK" to run Goal Seek.

Another way for using Goal Seek In Google Sheets, we will use it to solve the second example above. You can see that the steps are similar as follows:

·         Enter the formula and desired output value in separate cells as in Excel.

·         Click on the "Data" menu and select "Goal Seek."

·         In the Goal Seek dialog box, enter the cell reference for the cell containing the formula you want to use in the "Set cell" field.

·         Enter the desired output value in the "To value" field.

·         Enter the cell reference for the cell containing the input value you want to change in the "By changing cell" field.

·         Click "OK" to run Goal Seek.

Not Every Spreadsheet Software Has Goal Seek Feature

Therefore, it's important to check whether the spreadsheet software you're using has a Goal Seek feature or a similar feature that achieves the same result. If the software does not have a Goal Seek feature, you may need to use other methods to find the necessary input value to achieve a desired output value, such as using formulas or performing manual calculations.