What-if evaluation

Updated: 12/20/2017 by Computer Hope

Method of viewing various situations in a formula. For example, in Microsoft Excel, you can perform a what-if evaluation by placing different values into a cell and comparing the results. As seen in the examples below, using a spreadsheet program, a user could manipulate the interest rate and determine what a monthly payment is.

Example One

Mortgage amount: $100,000
Years: 30
Interest rate: 12.000%
Monthly Payment: $1,028.61

Example Two

Mortgage amount: $100,000
Years: 30
Interest rate: 8.000%
Monthly Payment: $733.76

The following Excel formula could be used to figure out this mortgage monthly payment assuming that the values were in the B column.

=-PMT(B3/12,B2*12,B1)

Formula, If statement, Spreadsheet terms