![]() Let's say we want to calculate the number of units that must be sold in order to generate $20,000.įor instructions on how to use the Goal Seek Excel tool, see the screenshot below.ġ.Place the pointer over the cell that contains the desired change in output (revenue)Ģ. Retail price is $25.00 Selling discount is 10% Revenue is $11,250 The following details can be found in the current model: Consider a very simple model that determines total net revenue by adding the quantity of units sold, the retail price, and a discount. Let's first examine a straightforward experiment to show how Goal Seek functions. When performing sensitivity analysis in financial modelling, the tool is quite helpful. Goal Seek can calculate the number of units that must be sold in order to generate $1 million in revenue, for instance, if the formula for revenue is equal to the number of units sold times the selling price. Back-solving is effectively done by the function by feeding in guesses and trying different solutions until it finds the right one. By altering an underlying assumption, the Goal Seek Excel function (also known as What-If-Analysis) allows one to solve for a desired output. ![]()
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