Now click “OK” to know the investment amount. So the “ Set Cell” is B5, “ To Value” is 25000 and we want to change the value of cell B2. We need the Future Value of cell B5 to be 25000. See the below figure to understand the process. It has three fields which we need to fill. You can find the Goal Seek option in the “ What-If Analysis” under the Data tab of Microsoft Excel. Here we need to back calculate the investment amount using Goal Seek. Now what if we want to know how much we need to invest in order to get a return of Rs 25000.00 keeping other conditions same. Use of Goal Seek in Excel 2016 Calculating return on investment Let’s take an example where we assumed an annual interest of 7% and want to know the future value of Rs 10000.00 invested for a period of 10 years. It contains the formula for calculating the return from compound interest. See the below screenshot from my excel spreadsheet. So the interest in the next year is 10% of Rs 110.00 that is Rs 11.00, it also gets added with the principal amount (Rs 110.00+11=Rs 121.00) and the process goes on. We know that our investment either in Bank deposits or the market earns compound interest.Ĭompound interest means annual interest gets accumulated with the principal amount and next time the interest is calculated on this increased amount.įor example, if we invest Rs 100.00 and gets a 10% interest in the first year, in the next year the principal amount becomes Rs 110.00. Here we will use the formula for compound interest. There are lots of online tools available to calculate this. Here are some useful articles on the use of Power BI to create map visualization, data modelling, web scraping to collect data. And also how much they should invest to reach their goal. Every one of us wants to know the future value of their investment amount.
I will demonstrate the use of Goal Seek with a very practical example. So let’s start with the Goal Seek function. Among these two, Goal Seek is the simpler one. These two help us to perform some back calculations. Goal seek and solver in Microsoft Excel 2016 are two very important functions.
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