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Excel Solver Tool

By Jeevan A YJeevan A Y

Solver in Excel

Solver Tool in Excel (Table of Contents)

  • Solver in Excel
  • Where to find Solver in Excel?
  • How to Use the Solver tool in Excel?

Solver in Excel

Solver tool in excel is quite a useful tool for those in the analysis domain, which is used for operations research to find the optimum solution for any decision problem. The solver tool can be activated in excel from Excel Options under the tab Add-Ins. We will be able to see this in the Data tab under the analysis section as Solver. In Solver, we just need to add the cell formula or problem, then select the cells that are affecting it.

Where to find SOLVER in Excel?

Excel SOLVER tool is located under Data Tab > Analysis Pack > Solver.

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If you are not able to see the SOLVER tool in your excel, follow the below steps to enable this option in your excel.

Step 1: Firstly, go to File and Options at the left-hand side of the excel.

Solver Step 1

Step 2: Select the Add-Ins after Options.

Solver Step 2

Step 3: At the bottom, you will see Excel Add-ins, select that, and click on Go…

Solver Step 3

Step 4: Select Solver Add-in and click OK.

Solver Step 4

Step 5: This will enable the SOLVER Add-in Option for you.

Solver Step 5

How to use Solver in Excel?

A solver tool is very simple to use. Let us now see how to use the Solver tool in Excel with the help of some examples.

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You can download this Solver tool Excel Template here – Solver tool Excel Template

Example #1

As I have explained at the start, we will do the X + Y = 50 calculation to start our SOLVER journey in Excel.

Goal: X + Y = 50

Conditions:

  • X should be a positive integer value
  • X should be >= 30
  • Y should be a positive integer value
  • Y should be >= 25

Step 1: Write a simple equation in an excel sheet.

Solver Example1-1

I have mention X & Y as variables. As dummy data, I have mentioned 1 for both X & Y variables. The SUM function adds those two cell values and gives the sum.

Step 2: Go to Data tab > Solver.

Solver Example1-2

Step 3: Once you click on Solver, it will open the below dialogue box. Here we need to set our objective, give many criteria’s and solve the problem.

Solver Example 1-3

Step 4: In the Set Objective, give a link to the cell that we want to change. In this example, the cell we want to change is cell B3.

Solver Example 1-4

Step 5: In the To: section, select Value of and type 50 as the value. In this case, X + Y should be equal to 50.

Solver Example 1-5

Step 6: Now, in By Changing Variable Cells: select the cells you want to change the values to get the sum of 50. In this example, we need to change the variables X & Y, and these cell values are in B1:B2.

Solver Example 1-6

Step 7: Now comes the criteria part. Remember our criteria initially we stated. Click on ADD option in the Solver dialogue box.

Solver Example 1-7

Step 8: Once you click on the ADD item, it will open the below dialogue box. In this box, we need to mention our first criteria.

Our first criterion is X should be greater than equal to 30.

Solver Example 1-8

Once you set the criteria, click on Add. It will add the criterion to the solver box, the current values will be stored, and the same box will once again show up with no values.

Step 9: In the same box, give the second criteria. The second criterion is X should be an integer value. Click on Add button.

Solver Example 1-9

Step 10: Similarly, give criteria to the second variable, Y. For this variable, criteria are it should be greater than equal to 25 and should be an integer. Click on Add button.

Solver Example 1-10

Step 11: Give the second criteria for variable Y.

Solver Example 1-11

Step 12: Click on the OK button.

Example 1-12

You will see all the variables in the SOLVER box.

Example 1-13

Step 13: Now click on the SOLVE button, which is located at the bottom of the box.

Example 1-14

Step 14: Once the SOLVE button has clicked, excel will solve the problem based on the criterion you have given. (Excel will take some 15 seconds to run it).

Example 1-15

Step 15: Click on OK. This dialogue box will be removed.

Example 1-16

Therefore, the X value is 30, and the Y value is 25 to get the total of 55.

Example 1-17

In this way, we use SOLVER to solve our problems.

Example #2

I will demonstrate one more example to understand better.

I have Units produced, basic units per price, the total cost involved, and the profit value.

Example 2-1

By selling 1500 units at a basic rate of 15 per unit, I will earn 2150 as profit. However, I want to earn a minimum profit of 7500 by increasing the unit price.

Problem: How much should I increase the unit price to earn the profit of 7500?

Step 1: Open the Excel SOLVER tool.

Example 2-2

Step 2: Set the objective cell as B8 and the value of 7500 and by changing the cell to B3.

 Example 2-3

Step 3: I do not have such criteria to be satisfied to increase the unit price. So, I am not giving any kind of criteria. Click on the SOLVE button.

Example 2-4

Step 4: In order to earn a profit of 7500, I must sell at 19 per unit instead of 15 per unit.

Example 2-5

Things to Remember

  • SOLVER is the tool to solve your problem.
  • It works similar to the Goal Seek tool in excel.
  • You can give 6 kinds of criteria. >=, <=, =, integer, binary, difference
  • First, you need to identify the problem and the criteria associated with it.

Recommended Articles

This has been a guide to the Excel Solver tool. Here we discuss how to use the Solver tool in Excel along with practical examples and a downloadable excel template. You can also go through our other suggested articles –

  1. Auditing Tools in Excel
  2. Excel Tool for Data Analysis
  3. Excel Quick Access Toolbar
  4. Excel Toolbar
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