What If Analysis - Goal Seek in Excel

In the same scenario where you are calculating simple interest like in previous post on scenariomanager, but now you have a particular amount as simple interest in mind and want to check what rate of interest will be necessary, for the particular rate of interest, you can use goal seek.

 Here we have calculated the simple interest with the same formula of  Principal * Rate of Interest* Number of Years.

 

Now, suppose you want to check for a simple interest of 5000, what would be the required rate of interest without changing any formula?

Click on Data Tab > What -if Analysis > Goal Seek 

Now, in Set cell would be the cell whose value you want to decide. Here it would be B4 containing Simple Interest. In To value enter the value you want it to be changed to. Here it would be 5000. Since we want to check the rate of interest for it, the rate of interest was in B2 cell, so By changing cell would be B2.

 In our case, the rate of interest should be 3% if we want simple interest to be 5000.