# 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 `i`

of 7.5% and the number of years `n`

(1) will remain constant. However, you want to know how much the investment capital `C`

would have to be modified in order to attain a particular return `I`

. For this example, calculate how much capital `C`

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.

- Place the cursor in the cell containing the interest
`I`

, and choose**Tools - Goal Seek**. The**Goal Seek**dialog appears. - The correct cell is already entered in the field
**Formula Cell**. - Place the cursor in the field
**Variable Cell**. 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`C`

. - Enter the expected result of the formula in the
**Target Value**text box. In this example, the value is 15,000. Click**OK**. - A dialog appears informing you that the Goal Seek was successful. Click
**Yes**to enter the result in the cell with the variable value.