In the example above, if you wanted to know the home's projected value in 2025, you'd enter 2025 in cell B8. You can enter your chosen date in the cell below the final cell in the first column. The next step is to choose a date that you want to forecast. For example, consider this data set that displays the value of a home each year.Ģ.
Each y value corresponds to one of the values in the first column. Enter the y values, or dependent variables, in the second column. For forecasting purposes, these values are usually dates in the form of days, months, quarters or years. Enter the x values, or independent variables, in the first column. Open a spreadsheet and title two columns according to the variables in your data. Here's how to use the FORECAST function in Excel: 1. Related: 10 Top Excel Accounting Formulas and Functions (With Examples) How to use FORECAST in Excel They can use a company's sales data to predict its future performance and use these findings to hire more employees, create budgets and expand infrastructure.
Other professionals that may find forecasting useful are financial analysts. This insight can help them plan their selling strategies and market to the appropriate buyers. For instance, a realtor might use forecasting to predict the future value of a home. Related: 10 Skills Financial Analysts Need to Master Why create a forecast in Excel?Ī forecast in Excel allows you to predict future performance based on current data and is useful in many professions. In this article, we explain how to use FORECAST in Excel and discuss other ways to predict trends in your spreadsheets. Understanding how to accomplish this task can help you predict future performance to provide companies with valuable insight. Spreadsheet programs allow you to use your data to create forecasts and trendlines. While current data is useful for analyzing a company's success, you may wonder how it might perform in the future.
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