Goal Seek finds the input value needed to achieve a specific result. Instead of asking "What will happen?", it answers "What do I need to make this happen?"

How Goal Seek Works

Goal Seek answers: "What input gives me the desired output?"

Example Question:
"What price do I need to charge to reach $100,000 profit?"

Goal Seek finds the answer automatically through iteration.

Example 1: Loan Amount

Scenario: Maximum monthly payment is $2,000
Question: What's the maximum loan amount?

Setup:
Cell B1: Loan Amount (to be calculated)
Cell B2: Interest Rate = 5%
Cell B3: Years = 30
Cell B4: =PMT(B2/12, B3*12, -B1)

Goal Seek:
1. Data → What-If Analysis → Goal Seek
2. Set cell: B4 (monthly payment)
3. To value: -2000
4. By changing cell: B1 (loan amount)
5. Click OK

Result: B1 shows maximum loan amount (~$372,800)

Example 2: Break-Even Price

Setup:
Cell B1: Units Sold = 1000
Cell B2: Price per Unit = 50 (to find)
Cell B3: Variable Cost = 30
Cell B4: Fixed Costs = 15000
Cell B5: =B1*(B2-B3)-B4  // Profit formula

Goal Seek to Break Even:
Set cell: B5 (profit)
To value: 0 (break even)
By changing: B2 (price)

Result: Price needed to break even = $45

Example 3: Target Grade

Scenario: Need 90% average, what do you need on final exam?

Setup:
Cell B1: Test 1 = 85
Cell B2: Test 2 = 88
Cell B3: Final Exam = 0 (to calculate)
Cell B4: =AVERAGE(B1:B3)

Goal Seek:
Set cell: B4 (average)
To value: 90
By changing: B3 (final exam score)

Result: Need 97 on final exam

Example 4: Sales Target

Question: How many units to sell for $50,000 profit?

Setup:
Cell B1: Units (to find)
Cell B2: Price = 100
Cell B3: Cost = 60
Cell B4: Fixed Costs = 10000
Cell B5: =B1*(B2-B3)-B4  // Profit

Goal Seek:
Set cell: B5
To value: 50000
By changing: B1

Result: Need to sell 1,500 units

Steps to Use Goal Seek

1. Create formula with dependent cell
2. Identify the cell to change
3. Data tab → What-If Analysis → Goal Seek
4. Set cell: Cell containing formula
5. To value: Desired result
6. By changing cell: Input to adjust
7. Click OK

Goal Seek Limitations

• Can only change ONE input cell
• May not find solution if one doesn't exist
• Finds first solution (may be multiple answers)
• For multiple variables, use Solver instead

When to Use Goal Seek

• Finding break-even points
• Determining required pricing
• Calculating needed sales volume
• Budget planning and forecasting
• Loan and investment calculations