The Goal Seek function is a valuable feature that lets the user back into the value for an unknown variable in an equation. For example, the typical financing arrangement for leasing a car will usually provide an interest rate and lease term, such as 6% over 60 months for a car valued at \$25,000. Using the PMT formula in Excel, the estimated payment for these lease terms is \$483.32.

Here is the layout of the key variables, as well as the output provided by Goal Seek:

 Car Loan Repayment Schedule Interest Rate 0.06 Loan Duration 60 Total Loan Amount 25000 Payment \$483.32

But let's say you have a few extra dollars and are interested in knowing how long the loan will last when you spend \$500 a month for the same 6% interest rate. Using Goal Seek, here is what the inputs would look like:

According to Goal Seek, upping the monthly payment slightly would shave more than two months off the loan duration. Here are the outputs:

 Car Loan Repayment Schedule Interest Rate 0.06 Loan Duration 57.6801385 Total Loan Amount 25000 Payment \$500.00

Guide To Excel For Finance: HLookup And VLookup
Related Articles
1. Personal Finance

### How Interest Rates Work On Car Loans

2. Personal Finance

### How Risky Are Long-Term Car Loans?

A look under the hood of long-term car loans.
3. Managing Wealth

### Unsecured Personal Loans: 8 Sneaky Traps

If you are seeking a personal loan, be aware of these pitfalls before you proceed.
4. Insights

### An Introduction to Government Loans

Government loans provide more benefits than private loans are available in many areas, including business, education, housing, disaster relief and more.
5. Managing Wealth

### When Are Personal Loans a Good Idea?

You never want to borrow money for frivolous reasons, but these five circumstances might warrant it.
6. Personal Finance

### Different needs, different loans

When it comes to loans, there are many different types according to your needs. Find out what options are available when it comes to borrowing money.
7. Personal Finance

### How To Apply For a Personal Loan

Learn about different avenues for applying for a personal loan, and learn valuable tips to help you get your personal loan application approved.