Say you have a quarterly Profit Statement and your Sales for Q1 and Q2 have been reasonably well but in Q3 they dropped dramatically.  You are left with one quarter to meet your Net Profit goal of $200,000.

You can use Excel´s Goal Seek feature (under What If Analysis) to find out what Sales you need to achieve in Q4 in order to meet your Net Profit goal of $200,000.

DOWNLOAD EXCEL WORKBOOK

STEP 1: Select the cell that you want to achieve your goal of $200,000 which is the Total Net Profit in cell F7, which is a Sum formula (Important: This cell must be a formula for the Goal Seek to work)

Select Net Profit cell

STEP 2: Go to Data > What If Analysis > Goal Seek

what if analysis goal seek

STEP 3: SET CELL: This is the cell that contains the goal we want to achieve, F7, and is selected automatically

set cell goal seek excel

STEP 4: TO VALUE: Type the goal value that you want to achieve.  In our example, it will be 200,000

to value goal seek excel

STEP 5: BY CHANGING CELL: Enter the reference for the cell that contains the input value that you want to adjust.  In our example it is the Q4 Sales forecast in cell E5

by changing cell goal seek excel

STEP 6: Press OK and Goal Seek will run and produce a result.  Press OK to keep the results or Cancel to discard

goal seek result excel

With Goal Seek we need to achieve Q4 Sales of $437,730 in order to achieve our Net Profit goal of $200,000.  Over to the Sales team then to make it happen!

Goal Seek - Budget Values

HELPFUL RESOURCE:

mrexcelXL

If you like this Excel tip, please share itEmail this to someone

email

Pin on Pinterest

Pinterest

Share on Facebook

Facebook

Tweet about this on Twitter

Twitter

Share on LinkedIn

Linkedin

Share on Google+

Google+

Related Posts

Use Excel Goal Seek To Find The Formula Result You... If you have a formula and want to show a specific result, but you do not know what input values to change within the formula, then Excel's Goal Seek feature is the one for you. Imagine you are calculating the payment terms on a loan. Your PMT formula gives you an amount of ...