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Excel Solver does not solve problem. Is there a formula I can use instead?

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    Excel Solver does not solve problem. Is there a formula I can use instead?

    I am trying to use Data==>Solver to find out what price we should pay for a property.
    We want to achieve a net rental return of 7% (after mortgage interest) on the net capital employed.
    The interest rate and size of loan (as a percentage of purchase price) are variables which may change.
    We need to calculate what price to offer for the property under several scenarios in order to achieve our expected return.
    Solver can't solve it. I can't figure out why. Am I doing something wrong? (See pictures below)
    Is there a formula I can use instead.
    Spreadsheet is attached.
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    Forum Expert WideBoyDixon's Avatar
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    Re: Excel Solver does not solve problem. Is there a formula I can use instead?

    E5 formula:

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    No need to use solver - just re-arrange the equation

    WBD
    Office 365 on Windows 11, looking for rep!

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    Re: Excel Solver does not solve problem. Is there a formula I can use instead?

    Excellent. Thank you WideBoyDixon. That works. Now I am scratching my head wondering why I could not figure that out.

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    Forum Expert WideBoyDixon's Avatar
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    Re: Excel Solver does not solve problem. Is there a formula I can use instead?

    You had:

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    And you wanted F5 to match D5, so:

    Replace F5 with D5 and multiple both sides by (E5-E5*B5)
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    Multiply out the parentheses:

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    Move all the E5 to one side:
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    Simplify the left hand side by taking a factor of E5 out:
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    Then divide both sides by (D5-D5*B5+B5*C5)
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    WBD

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