What If Analysis - Scenario Manager in Excel

Suppose you want to calculate simple interest. The formulae for simple interest is Simple Interest = Principal * Rate of Interest * Number of Years.

Now you need to check what will the simple interest when the rate of interest changes from 5% to 10%.

Lets first calculate the simple interest for rate of interest as 5%.

 

For 5%, the Simple Interest is 7500 for a Principal amount of 50000 and number of years is 3. This is one scenario. The same way for every change of percentage there is one scenario.

Let us save all the scenarios as shown below:

Click on Data Tab > What-if Analysis > Scenario Manager

Click on Add button

Provide an appropriate name.

 Enter the value, here it would be 5% i.e 0.05

Like wise create scenarios for all the required percentages from 5% to 10% .Click on Summary button

Click on Scenario Summary to find below report :