What-If Calculation

Forecasting computation that allows testing of different hypotheses for repricing assets and acquiring funds. These hypothetical calculations usually are executed with a spreadsheet program using a microcomputer. In asset-liability management, a what-if calculation can estimate the difference between maturing assets and liabilities for different time periods in the future. These models also can forecast changes in pro forma financial statements under different interest rate scenarios, and are an analytical tool used in credit analysis.