Excel: Scenario Manager Feature

Scenario Manager is useful in the cases where you have more than two variables in sensitivity analysis. Scenario Manager creates scenarios for each set of the input values for the variables under consideration. Scenarios help you to explore a set of possible outcomes. If you want to analyze more than 32 input sets, and the values represent only one or two variables, you can use Data Tables. Although it is limited to only one or two variables, a Data Table can include as many different input values as you want.

For example, you can have several different budget scenarios that compare various possible income levels and expenses. You can also have different loan scenarios from different sources that compare various possible interest rates and loan tenures. If the information that you want to use in scenarios is from different sources, you can collect the information in separate workbooks, and then merge the scenarios from the different workbooks into one. A scenario is a set of input values that you can substitute in a worksheet to perform what-if analysis. You could also create scenarios to show various interest rates, loan amounts, and terms for a mortgage. Excel’s scenario manager lets you create and store different scenarios in the same worksheet.