How To Use Goal Seek in Excel (Video transcript)
The goal seek helps to find the right input for the value we want. We will do two exercises, here we have the PMT scenario. We want to borrow many and the condition is at 5.5 interest rate, with 60 months’ payoff, if we borrow 44,000 our monthly payment will be 840. If we can’t afford to pay 840 every month and want to increase the term of payment, how can we adjust it. This case Goal seek will give great help.
Go to data, and what-if analysis, and click goal seek, I want the payment value to change and to value to 500(that is my capacity to pay) and since I can’t change the interest, the changing cell will I5(the term). Now the term of payment set to 113.
Let’s try another example. Here we have a list of salaries and a company become profitable to increase their salary by this percent. The sum of the total salary is around 53,000000. But it has a capacity to increase up to 55,000000. How can we figure out this increased rate?
Let’s first find the sum of the new salary and use goal seek. go data and goal seek and set cell the total and to value to 55,000000 and the changing cell will be the rate. the management can increase the salary by up to 5.57 %.