Creating a Data Table for What-If Analysis in Excel

Data Tables in Excel are powerful tools for analyzing different scenarios by varying one or two inputs. They are especially useful for financial calculations like loans, investments, or product pricing. Here’s how to use them effectively:

1. One-Variable Data Table

A one-variable data table allows you to see how changing a single input affects the outcome.

Example: Future Value of an Investment with Different Interest Rates

1. Set Up Your Data:
   • Write the formula (e.g., =FV(rate, nper, pmt, pv) for future value) in a cell.
   • Enter the varying input values (e.g., interest rates) in a column or row.
   Tip:
   • For a column-oriented data table, place the formula one cell above and to the right of the column of values.
   • For a row-oriented data table, place the formula one cell below and to the left of the row of values.
2. Select Your Data: Highlight the range containing the formula, input values, and the area for results.Example:
   • If the formula is in D2 and the interest rates are listed in C3:C6, select C2:D6.
3. Create the Data Table:
   • Go to the Data tab.
   • Click What-If Analysis > Data Table.
   • In the Data Table dialog:
     • Enter the Column Input Cell reference if your inputs are in a column.
     • Enter the Row Input Cell reference if your inputs are in a row.
   For Example:
   • Column Input Cell = B3 (the interest rate cell reference).
4. View Results:
   • Excel calculates and fills in the table, showing the outputs for each input value.

2. Two-Variable Data Table

A two-variable data table lets you analyze the effect of two changing inputs simultaneously.

Example: Future Value with Varying Interest Rates and Payment Counts

1. Set Up Your Data:
   • Place the formula in the top-left corner where the column and row values intersect.
   • Enter one variable (e.g., interest rates) in a column below the formula.
   • Enter the second variable (e.g., number of payments) in a row to the right of the formula.
   Example:
   • Formula in C2.
   • Interest rates in C3:C6.
   • Number of payments in D2:F2.
2. Select Your Data: Highlight the entire range, including the formula, input values, and expected outputs.Example:
   Select C2:F6.
3. Create the Data Table:
   • Go to the Data tab.
   • Click What-If Analysis > Data Table.
   • In the Data Table dialog:
     • Enter the Row Input Cell (e.g., for number of payments).
     • Enter the Column Input Cell (e.g., for interest rates).
   For Example:
   • Row Input Cell = B4 (number of payments).
   • Column Input Cell = B3 (interest rate).
4. View Results:
   • Excel calculates the outcomes for all combinations of the two variables, displaying them in a structured table.

Why Use Data Tables?

• Automated Calculations: Eliminates manual recalculations for different scenarios.
• Clear Analysis: Displays outcomes in an organized format, making it easy to interpret data.
• Dynamic Updates: Automatically updates results when you change the input values or formula.

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