Explanation

What-If Analysis helps you understand how changing input values affects the final result.

It is useful for questions such as:

• What if the selling price increases?
• What if sales quantity decreases?
• What if expenses increase?
• What if the interest rate changes?
• What sales target is required to achieve a specific profit?

Excel provides three main What-If Analysis tools:

1. Goal Seek
2. Data Table
3. Scenario Manager

Go to:

Data → What-If Analysis

Example

Suppose:

Item	Value
Quantity	100
Selling Price	₹500
Cost per Unit	₹300
Total Cost	₹30,000
Revenue	₹50,000
Profit	₹20,000

Now ask:

What if the selling price becomes ₹550?

What-If Analysis helps examine the resulting profit.

Practice

Create a simple sales model with Quantity, Price, Cost and Profit.