Excel Goal Seek Made Easy: A Step-by-Step Guide

This tutorial shows an example of how to use the Goal Seek function in Excel to solve for what inputs we need in order to achieve certain outputs. First we review an Excel model that we then analyze using Goal Seek analysis.
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In this tutorial, we learn how use goal seek in Excel to figure out how to achieve a 20% profit margin by changing price, units sold, and a bunch of other assumptions.
Many times when we have a data model (financial or otherwise) we are are trying to figure out how to achieve a certain outcome, or how to solve for certain numbers. When analyzing situations like this, we often need to use "guess and check" to try to figure out how to get the outputs that we want.
Fortunately for us, we don't have to do this manually. There are a few functions on the "Data" tab (of Excel) under the "What-If-Analysis" button. All of these functions help us try to figure out which inputs we need to get certain outputs.
In this video we use Goal Seek Analysis to solve for how to achieve a 20% profit margin. We change many different assumptions - price, units sold, etc - using the Goal Seek function to try to solve this complicated scenario.
I hope you enjoy this tutorial and please let me know if you would like more videos on sensitivity analysis.
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[@yehiazakaria1545]

great , it's very easy example to understand

[@eric_andrews]

My pleasure Yehia ! Glad to see you are checking out some different videos - let me know if you are looking for anything in particular!!

[@zillabeast]

Excellent video

[@sghs6259]

How to go about it in the case of multiple products

[@eric_andrews]

Sure, for that one you need to use sensitivity analysis: th-cam.com/video/N924D6tGOG8/w-d-xo.html
Or if you are doing one more financially-focused this sensitivity video is even better: th-cam.com/video/OU9JUBbiiWg/w-d-xo.html
Cheers

[@jasonc4486]

i did the exactly the same method that you used Eric but the price turned out to be $200.56 why

[@eric_andrews]

My guess would be that you "hardcoded" something in the Outputs section. All of the Inputs need to be "hardcoded" meaning just typed-in data. Everything in the Output section needs to be formulas (ex: revenue =C8*C9, not just the number $350,000). There can be NO hardcoded pieces of info in the Outputs section or else you will get an error. I think that's what is happening. Does that help?

[@Prakash-db4dp]

Whats the trick to getting various inputs evaluated at once?

[@eric_andrews]

That's called sensitivity analysis. Here's another video I made about it! th-cam.com/video/N924D6tGOG8/w-d-xo.html

[@Prakash-db4dp]

@@eric_andrews Thanks Eric :)