Master Excel’s What-If Analysis: Goal Seek, Scenario Manager & Data Tables
Siddharth P.
Data Analyst, Data Scientist, Machine Learning and Gen AI | RAG | Agentic AI | ChatBot Development AI from IIIT-B & MBA Finance from NMIMS Computer Trainee as Data Analyst at Future Vision Computer Institute, Surat
Why Use What-If Analysis?
Business decisions often hinge on “What if?” questions:
- “What sales growth is needed to hit $1M profit?”
- “How does a 10% cost increase impact margins?”
Excel’s Goal Seek, Scenario Manager, and Data Tables turn uncertainty into actionable insights. Let’s break them down.
1. Goal Seek: Reverse-Engineer Your Targets
Use Case: Find the input needed to achieve a specific outcome.
Steps:
1. Data → What-If Analysis → Goal Seek.
2. Set:
- Set Cell: The formula cell (e.g., Profit).
- To Value: Target result (e.g., $1,000,000).
- By Changing Cell: Input variable (e.g., Sales Growth %).
3. Click OK → Excel calculates the required value.
📌 Example:
“What monthly growth rate is needed to reach $500K annual revenue?”
- Set Cell: Revenue formula.
- To Value: 500,000.
- Changing Cell: Growth rate cell.
Pro Tip: Use Goal Seek for single-variable problems.
2. Scenario Manager: Compare Multiple Scenarios
Use Case: Evaluate best-case, worst-case, and custom scenarios.
Steps:
1. Data → What-If Analysis → Scenario Manager → Add.
2. Name Scenario (e.g., “Best Case”).
3. Select Changing Cells (e.g., Price, Volume).
4. Enter values for the scenario → Repeat for others.
5. Summary: Generate a report comparing scenarios.
📌 Example:
Compare profit under 3 scenarios:
- Best Case: High volume, low costs.
- Worst Case: Low volume, high costs.
- Base Case: Current assumptions.
Pro Tip: Save scenarios to revisit later.
3. Data Tables: Model 1 or 2 Variables
Use Case: See how changing inputs affect outputs (e.g., revenue, ROI).
A. 1-Variable Data Table
Example: Test how interest rates impact loan payments.
1. List input values in a column (e.g., 3%, 4%, 5%).
2. Link the output formula to a cell (e.g., =PMT(rate, term, loan)).
3. Data → What-If Analysis → Data Table.
4. Column Input Cell: Select the rate variable cell.
B. 2-Variable Data Table
Example: Forecast profit with varying prices and volumes.
1. List Price in a row, Volume in a column.
2. Link the output formula to a cell (e.g., Profit).
3. Data Table → Row Input Cell: Price. Column Input Cell: Volume.
📌 Real-World Application:
“How does a 5-10% price change combined with 100-200 units sold affect profit?”
When to Use Each Tool
| Tool | Best For |
| Goal Seek | Solving for 1 unknown input. |
| Scenario Manager | Comparing 3–5 predefined scenarios. |
| Data Table | Testing 1–2 variables with multiple values. |
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Key Takeaways
1. Goal Seek is ideal for quick, single-variable solutions.
2. Scenario Manager simplifies comparing strategic options.
3. Data Tables automate sensitivity analysis for forecasts.
Try It Yourself
1. Use Goal Seek to find the required down payment for a $300K mortgage.
2. Build a Data Table to see how temperature and humidity affect crop yields.
💬 Share your experience in the comments!
Which tool do you find most powerful? Let’s discuss!
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