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\<bookmark_value\>goal seek example\</bookmark_value\>\<bookmark_value\>equations in goal seek\</bookmark_value\>\<bookmark_value\>calculating;variables in equations\</bookmark_value\>\<bookmark_value\>variables;calculating equations\</bookmark_value\>\<bookmark_value\>examples;goal seek\</bookmark_value\>

# Applying Goal Seek

With the help of Goal Seek you can calculate a value that, as part of a formula, leads to the result you specify for the formula. You thus define the formula with several fixed values and one variable value and the result of the formula.

## Goal Seek Example

To calculate annual interest (I), create a table with the values for the capital (C), number of years (n), and interest rate (i). The formula is:

I = C * n* i

Let us assume that the interest rate \<item type=\"literal\"\>i\</item\> of 7.5% and the number of years \<item type=\"literal\"\>n\</item\> (1) will remain constant. However, you want to know how much the investment capital \<item type=\"literal\"\>C\</item\> would have to be modified in order to attain a particular return \<item type=\"literal\"\>I\</item\>. For this example, calculate how much capital \<item type=\"literal\"\>C\</item\> would be required if you want an annual return of $15,000.

Enter each of the values for Capital C (an arbitrary value like $100,000), number of years n (1), and interest rate i (7.5%) in one cell each. Enter the formula to calculate the interest I in another cell. Instead of C, n, and i use the reference to the cell with the corresponding value.

1. Place the cursor in the cell containing the interest \<item type=\"literal\"\>I\</item\>, and choose \<emph\>Tools - Goal Seek\</emph\>. The \<emph\>Goal Seek\</emph\> dialog appears.

2. The correct cell is already entered in the field \<emph\>Formula Cell\</emph\>.

3. Place the cursor in the field \<emph\>Variable Cell\</emph\>. In the sheet, click in the cell that contains the value to be changed, in this example it is the cell with the capital value \<item type=\"literal\"\>C\</item\>.

4. Enter the expected result of the formula in the \<emph\>Target Value\</emph\> text box. In this example, the value is 15,000. Click \<emph\>OK\</emph\>.

5. A dialog appears informing you that the Goal Seek was successful. Click \<emph\>Yes\</emph\> to enter the result in the cell with the variable value.

Related Topics

Goal Seek