All the combinations of products and services that a customer may buy at the current price range while staying within the limits of his or her available budget are represented by a **budget constraint**. In this article, we are going to demonstrate the step-by-step procedure to** make a budget** constraint graph on Excel. If you are also curious about it, download our practice workbook and follow us.

**Table of Contents**hide

## Download Practice Workbook

Download this practice workbook for practice while you are reading this article.

## Introduction to Budget Constraints

The term **“budget constraint”** refers to all the combinations of products and services that a customer may buy at current pricing while staying within the limits of his or her available budget. This constraint prevents a consumer from buying a particular product in a large amount and helps to check the product’s purchasing feasibility when buying multiple types of products.

Let’s assume we want to buy two different amounts of products **A** and **B**. The price of product **A** is **x** and product **B** is **y**. Our amount of budget is **C**. So, the general equation of budget constraint will be:

`Ax + By ≤ C`

## Step-by-Step Procedure to Make a Budget Constraint Graph on Excel

To demonstrate the procedure, we presume that we have a budget of **$50** and we have to purchase some **pens** and **pencils**. The price of each **pen** will cost **$1**, and each **pencil** will be **$0.5**. This dataset is shown in the range of cells **B5:C7**.

**📚 Note:**

All the operations of this article are accomplished by using the **Microsoft Office 365** application.

### Step 1: Establishing Budget Equation

In the first step, we have to build our budget equation. This equation will look like the equation we have shown earlier. The procedure is explained below:

- First of all, we have to define
**two**quantity variables for pour products. Let’s take the number of**pencils**as**X**and the number of**pens**as**Y**in the range of cells**B8:C9**.

- After that, write down the budget equation in cell
**C12**with the help of the general equation shown in cell**C11**.

- Our first job is completed.

Thus, we can say that we have finished the first job to make a budget constraint graph on Excel.

**Read More:** **How to Calculate Remaining Budget Using Formula in Excel**

### Step 2: Estimation of Constraint Points

In this step, we will evaluate the constraint point to make the budget constraint graph. The process is described below:

- First, compare our budget equation with the
**general budget**equation, and note down the value of**a**,**b**, and**c**. - Here, we write down the value of
**a**,**b**, and**c**in the range of cells**C14:E15**.

- Now, we will calculate the constraint points of the budget constraint graph. Here, two possible cases can occur. Either we can use all of our money to buy only pencils, or we can use the budget for purchasing pens. So, these two points will be the constraint points.
- If we buy
**only pencils**, the value of**Y**will be**0**. So, select cell**D18**and write down**0**in that cell.

- Then, to get the maximum number of
**pencils**that we can purchase by this budget, write down the following formula in cell**C18**.

`=(E15-D15*D18)/C15`

- Press
**Enter**.

- Similarly, if we buy only
**pens**, the value of**X**will be**0**. - Now, select cell
**C19**and write down**0**into the cell.

- Afterward, select cell
**D19**and write down the following formula in the cell.

`=(E15-C15*C19)/D15`

- Again, press
**Enter**.

- You will get the constraint points.

Hence, we can say that we have completed the second job to make a budget constraint graph on Excel.

**Read More:** **How to Create a Construction Budget in Excel (with Easy Steps)**

**Similar Readings**

**How to Make a College Budget in Excel****Make a Budget in Excel for College Students (with Quick Steps)****How to Make a Wedding Budget in Excel (2 Suitable Methods)****Create an Operating Budget in Excel (with Detailed Steps)****How to Prepare Annual Budget for a Company in Excel**

### Step 3: Inserting Budget Constraint Graph

In the following step, we are going to insert the budget constraint graph in our Excel spreadsheet. The procedure is shown below:

- At first, select the range of cells
**C18:D19**. - Now, in the
**Insert**tab, click on the**drop-down arrow**of the**Insert Scatter (X, Y) or Bubble Chart**from the**Charts**group and choose the**Scatter with Stright Lins and Markers**from the**Scatter**section.

- The chart will appear in front of you.

- Now, modify the chart according to your desire. For our chart, we chose the
**Style****8**option from the**Chart Styles**group, located in the**Chart Design**tab.

- Besides that, we uncheck all the chart elements except the
**Axes**,**Axis**, and**Chart Title**options.

- Our graph insertion task is finished.

Therefore, we can say that we have accomplished the final job to make a budget constraint graph on Excel.

**Read More:** **How to Make a Budget Line Graph in Excel**

### Step 4: Check Feasibility with Sample Data

In this step, we are going to check the feasibility of our desired amount to check whether we can afford it. The process is given as follows:

- Firstly, write down your desired amounts in the range of cells
**C23:D23**.

- Now, in the
**Chart Design**tab, click on the**Select Data**option from the**Data**option.

- As a result, a small dialog box called
**Select Data Source**will appear. - After that, in the dialog box, select the
**Add**option.

- Another dialog box called
**Edit**Series will appear. - Then, input this series according to the image shown below.
- Finally, click
**OK**.

- Again, click
**OK**to close the**Select Data Source**dialog box.

- Now, you can input the quality according to your desire and check whether that quantity can afford within that amount.

Finally, we can say our all of our formulas and procedure work properly, and we are able to make a budget constraint graph on Excel.

**Read More:** **How to Create Actual Vs Budget Variance Reports in Excel**

## Conclusion

That’s the end of this article. I hope that this article will be helpful for you and you will be able to make a budget constraint graph on Excel. Please share any further queries or recommendations with us in the comments section below if you have any further questions or recommendations.

Don’t forget to check our website, **ExcelDemy**, for several Excel-related problems and solutions. Keep learning new methods and keep growing!

**Related Articles**

**How to Make a Household Budget in Excel (2 Smart Ways)****Make a Family Budget in Excel (2 Effective Ways)****How to Make a Personal Monthly Budget in Excel (with 6 Quick Steps)****Prepare Budget for a Company in Excel (2 Suitable Examples)****How to Make Food and Beverage Budget in Excel****How to Prepare a Vacation Budget in Excel (with Easy Steps)**