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 \$483.32Â
Â

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:

Â

Â

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 \$500.00Â
Â

Â

Guide To Excel For Finance: HLookup And VLookup
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