What is the purpose of the Goal Seek tool in Excel?

The purpose of the Goal Seek tool in Excel is to determine the necessary input to achieve a specific result in a formula. This feature allows users to set a desired outcome for a particular cell and then calculates what input value is needed in another cell to achieve that outcome. For example, if you want to find out what sales figure is required to reach a specific profit target, you can use Goal Seek to adjust the sales figure until your profit formula yields the target value.

This tool is particularly useful for scenarios involving financial modeling, budgeting, or any situation where you know the desired outcome but need to find the specific input values that will lead you there. Thus, it serves as a critical function for decision-making and scenario analysis in Excel.