Let’s say you have a worksheet designed to handle your widget sales. Here you are at the start of your fiscal year and you know you must realize at least $2,000,000 in widget sales during the coming year to meet your goals.
How many widgets do you need to sell to take in $2,000,000? This isn’t so hard to calculate. You can divide $2,000,000 by the Widget price of $255.54 to get 7826.56335603 (round to 7827).
You can make the calculation very quickly in Excel if you use the Goal Seek function. And this way, you don’t have to add anything to your worksheet or run a calculator program. Let’s look at an example.
Widget Price $255.54 (cell A1)
Number of Widgets sold (cell A2)
Total Sales (cell A3). The formula is =(A1*A2).
At this point, cell A2 is empty. Because it’s the first of the fiscal year, you haven’t sold any widgets yet.
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Now click cell A3 (Total) to select it and then choose Tools, Goal Seek. When the dialog box opens, you’ll see three entry boxes: Set Cell, To Value, and By Changing Cell. Set Cell will be set to A3, since you selected that cell before opening the dialog box. Into the entry box labeled To Value, type
2000000
(your goal). In the entry box labeled By Changing Cell, type
A2
This is the value you want to determine. Click OK and cell A2 will display 7826.563. Round this number to 7827. You’ll need to sell 7827 widgets to take in $2,000,000.
After you read and record the number displayed in cell A2, click Cancel and your worksheet reverts to its original entries (blank in this case).