Scenario Manager in Excel

Scenario Manager is a what-if analysis tool available in excelA What-if Analysis Tool Available In ExcelWhat-If Analysis in Excel is a tool for creating various models, scenarios, and data tables. It enables one to examine how a change in values influences the outcomes in the sheet. The three components of What-If analysis are Scenario Manager, Goal Seek in Excel, and Data Table in Excel.read more which works on different scenarios provided to it, it uses a group of ranges which impact on a certain output and can be used for making different scenarios such as well bad and medium depending on the values present in the range which impact the result.

What is Scenario Manager in Excel?

How to Use Scenario Manager Analysis Tool in Excel?

Scenario Manager is very simple and easy to use in excel. Let us understand the working of the Scenario Manager tool in Excel with some examples.

You can download this Scenario Manager Excel Template here – Scenario Manager Excel Template

Scenario Manager in Excel – Example #1

A simple example could be your monthly family budget. You will spend on food, travel, entertainment, clothes, etc.… and see how these affect your overall budget.

Step 1: Create a below table shows your list of expenses and income sources.

Scenario Manager - Step 1

  • In cell B5, you have total income.

Scenario Manager - Step 1-1

  • In cell B17, you have total expenses for the month.

Scenario Manager - Step 1-2

  • In cell B19, total money left.

Scenario Manager - Step 1-3

You are ending up with only 5,550 after all the expenses. So, you need to cut down your cost to save more for the future…

Step 2: From the top of Excel, click the Data menu > On the Data menu, locate the Data Tools panel > Click on the what-if-Analysis item and select the Scenario Manager in excel from the menu.

Scenario Manager - Step 2

Step 3: When you click on the Scenario Manager below, the dialogue box will open.

Scenario Manager - Step 3

Step 4: You need to create a new scenario. So click on the Add button. Then you will get the below dialogue box.

Scenario Manager - Step 4

By default, it shows the cell C10, which means that it is the currently active cell. First, type the Scenario Name in the box as the Actual Budget.

Scenario Manager - Step 4-1

Now, you need to enter which cells your excel sheet will be changing. In this first scenario, nothing will be changing because this is my actual budget for the month. Still, we need to specify the cells will be changing.

Now try to reduce your Food expenses and Clothes expenses. These are in the cells B15 & B13, respectively. Now your add scenario dialogue box should look like this.

Scenario Manager - Step 4-2

Click, OK, and Excel will ask you for some values. Since we do not want any changes to this scenario, just click OK.

Scenario Manager - Step 4-3

Now, you will be taken back to the Scenario Manager Box. Now the window will look like this.

Scenario Manager - Step 4-4

Now, one scenario is done and dusted. Create a second scenario, and this where you need to make changes to your Food & Clothes expenses.

Click the Add button one more time and give a scenario name as “Plan 2”. Changing the cell will be B15 & B13 (Food & Cloth expenses).

Scenario Manager - Step 4-5

Now, below Scenario Values dialogue box opens again. This time, we do want to change the values. Enter the same ones as in the image below:

Scenario Manager - Step 4-6

These are the new values for our new scenario, Plan 2. Click OK, and now you are back to the Scenario Manager window. Now we already have two scenarios named after Actual Budget & Plan 2.

Scenario Manager - Step 4-7

Click the Add button one more time and give a scenario name as “Plan 3”. Changing the cell will be B15 & B13 (Food & Cloth expenses).

Scenario Manager - Step 4-8

Now, below Scenario Values dialogue box opens again. This time, we do want to change the values. Enter the same ones as in the image below:

Scenario Manager - Step 4-9

These are the new values for our new scenario, Plan 3. Click OK, and now you are back to the Scenario Manager window. Now you have three scenarios named after Actual Budget, Plan 2, and Plan 3.

Scenario Manager - Step 4-10

As you can see, we have our Actual Budget, Plan 1 and Plan 2. With Plan 2 selected, click the Show button at the bottom. The values in your excel sheet will change, and the new budget will be calculated. The image below shows what it looks like.

Scenario Manager - Step 4-11

Click on the Actual Budget, then click on the Show button to see the differences. Initial values will be displayed.

Scenario Manager - Step 4-12

Do the same for Plan 2 to look at the changes.

Scenario Manager - Step 4-13

So Scenario Manager in Excel allows you to set different values and allows you to identify the significant changes from them.

How to Create a Summary Report in Excel?

After we are done with adding different scenarios, we can create a summary report in excel from this scenario manager in excel. To create a summary report in excel, follow the below steps.

  • Click on the Data tab from the Excel menu bar.
  • Click on What-If-Analysis.
  • Under the what-if-analysis, click Scenario Manager in Excel.
  • Now click on Summary.

Scenario Manager (Summary Report) - Step 1

  • Click ok to create the summary report in excel.

Scenario Manager - Step 4-14

  • It will create the summary in the new sheet, as shown in the below image.

Scenario Manager - Summary Report

Scenario Manager in Excel Example #2: Take the below data and create new scenarios.

Take the below data table and create new Scenarios.

Formula used in cell B4 is =B2*B3 & in cell B11 is = B4 – B9

Scenario Manager - example 2

In addition, your scenarios will look like the below one.

Scenario Manager - Summary Report 2

Recommended Articles

This has been a guide to what is the Scenario Manager in Excel. Here we walk through examples on how to use Scenario Manager in excel and create Summary Report along with downloadable excel templates. You may also look at these useful functions in excel –

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