What is the purpose of "What-If Analysis" in Excel?

The purpose of "What-If Analysis" in Excel is to evaluate and assess potential scenarios and their impacts on outcomes. This analytical tool allows users to create different scenarios by changing the values in a spreadsheet and observing how those changes affect the results of formulas or calculated values. For example, this can be useful in financial forecasting, budgeting, or any situation where understanding the effects of different variables is important for decision-making.

Through tools like Scenario Manager, Goal Seek, and Data Tables, users can experiment with various inputs to see their influence on outputs, aiding in strategic planning and analysis. This capability is essential for users who want to understand the implications of potential changes in their data, making it a critical feature for effective analytical work in Excel.