Goal Seek In Excel - An example

Hello friends , today we will discuss the Goal Seek Function. This function allows us to alter data in formulas to get different results or results that we require. We can then compare results as per our requirement.

Lets take an example.

Everyone retires and we need to plan for it. Why not do it from excel.

Lets suppose I want Rs. 1,00,000,00 at age 50 (Please don't ask what i am going to use that for). Currently I am 30 ( That's True). We will be using the future Value formula in excel to determine the time value of money. 

Now lets assume the following variables.

Interest Rate –                      8 % P/Annum

Frequency of Compounding -  Monthly

Remaining No of Years -         20

We also assume that the payments are made at the beginning of the month.

Once we have entered the Data as highlighted in Yellow as per our requirement.

Go to the data Tab in Excel and Select "What if Analysis". Then Goto the goal Seek function from the drop down and click Ok.

The below Screen will open up.

Now I hope the diagram is Self Explanatory.

We have to set cell C3 to the required value (1,00,000,00) and click ok, and Amen. You will need to invest Rs. 16,865 per month to retire with Rs.1 Crore in 20 years. Too long a wait but now you at least know it. There are other variations too to this function and will be discussed in the coming posts.

Thanks for visiting as always.

Signing Off

Please comment for any queries that you may have.