This box is the reference for the cell that contains the formula that you want to resolve, in this case the PMT function. Step 1 − Go to DATA > What If Analysis > Goal Seek on the Ribbon. Perform the Analysis with Goal Seek as follows − The table now looks like −Īs the Interest_Rate cell is empty, Excel takes that value as 0 and calculates the EMI. The PMT function is placed in the cell EMI so that it can be used by Goal Seek.Įxcel computes the EMI with the PMT function. Goal Seek requires a formula to find the result.

Further, though you know the EMI that you can pay (50000), that value is not included as you have to use the Excel PMT function to arrive at it. The cell Interest_Rate is kept empty, as you have to retrieve that value. Step 2 − Enter the values in column C corresponding to column D. Step 1 − Set up the Excel cells for Goal Seek as given below. You can use Goal Seek to find the interest rate at which you can borrow the loan as follows − You want to know at what interest rate you can borrow the loan. Suppose you want to take a loan of 5,000,000 and you want to repay in 25 years. Refer to the chapter – Optimization with Excel Solver in this tutorial. If you have more than one input value to be determined, you have to use the Solver add-in. Goal Seek works only with one variable input value. Then, by varying the input value in the formula, Goal Seek tries to arrive at a solution for the input value. Goal Seek requires a formula that uses the input value to give result in the target value. Goal Seek is a What-If Analysis tool that helps you to find the input value that results in a target value that you want.

Use goal seek excel