In the Data tab, in the Analyze group, you can see the Solver option is added.

Go to Add-ins, select Solver Add-in, and click on the Go button.

This process aids in determining the desired result for the objective cell. The solver adjusts the value of decision variable cells to work on the limits on constraint cells. Solver works with decision variables which are a group of cells used in computing the formulas in the objective and constraint cells. Some constraints or limits are however applicable on other formula cell values on a worksheet. The feature can be used to identify an optimal value for a formula in the cell known as the objective cell. It is an add-in program in Microsoft Excel and is helpful on many levels. Several different sets of values can be used in one or multiple of these Advanced excel formulas to explore the different results.Ī solver is ideal for what-if analysis. What-If Analysis is the method of changing the values to try out different scenarios for formulas in Advanced excel. Go to Home > Number and change the value to Percentage. You will see the goal seek function automatically gives the interest rate that is required to pay the loan amount. Set rate of interest as the changing cell. The deduction in amount signifies the negative value. Go to Data > What - If Analysis > Goal Seek.Currently, there is no value in the rate of interest cell, Excel gives us the payment of $3,333.33 because it assumes the rate of interest to be 0%. PMT formula should now be entered in the cell that is the Payment cell adjacent.Let’s go through this problem in steps to see how we can calculate the interest rate that will settle a loan of $400,000 by $5,000 a month payment. PMT function is used when you want to calculate the monthly payment you need to pay to settle the loan amount. $5000 per month to settle the loan amount. In this example, we aim to find what will be the rate of interest if the person wants to pay Let’s look at an example to understand it better.

Excel solver function multiple cells