Goal Seek

Financial models usually work forward: inputs produce outputs. Goal seek works backwards. The user specifies a target value for an output cell and chooses which input cell to change, and the tool searches for the input value that achieves the target.

For example, an analyst might use goal seek to find the sales volume at which a project breaks even, the purchase price at which a leveraged buyout achieves a 20% return, or the interest rate that makes a loan's monthly payment equal to 1,000.

Goal seek is quick and useful for answering single questions. It changes only one input at a time and replaces the input value in the cell, so it is good practice to note the original value or work on a copy.

For more complex problems, such as changing several inputs at once or applying constraints, spreadsheet programs provide more advanced tools, such as Solver in Microsoft Excel. Data tables are used to show results across a range of inputs rather than finding a single target.