Excel Waterfall Chart Template: Build and Customize One

Yes. In Excel for Microsoft 365 on Windows, select a category-and-value table, then choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall to create a waterfall chart. For a reusable Excel template, prepare the table and chart, mark the opening and ending bars as totals, and save the workbook as an Excel Template file.

What an Excel waterfall chart template contains

A waterfall chart shows how a starting amount changes through a sequence of increases and decreases before reaching an ending amount. It is useful for explaining a bridge between two figures, such as how revenue and expenses turn an opening balance into a closing balance. Unlike a conventional column chart, the intermediate bars appear to float at the level reached after the preceding steps.

An Excel template is a workbook set up for repeated use. It can include the chart, a clearly labeled input table, formatting, and brief instructions. A template does not automatically know what your figures mean: you still enter or replace the categories and amounts, check the signs, and identify which bars should represent complete totals.

Excel has a built-in Waterfall chart type, so most users do not need a third-party add-in or a complicated formula-driven chart. A native chart is generally the simplest starting point when the goal is to display a standard sequence of positive and negative changes.

Set up the source data

Put each step in its own row, with the category in one column and the amount in the next. Use a short, descriptive heading in the first row. A basic table might look like this:

Opening balance — 100
New sales — 45
Returns — -18
Operating costs — -7
Closing balance — 120

In this example, the opening balance is 100. Sales add 45, taking the running amount to 145; returns subtract 18, taking it to 127; and operating costs subtract 7, leaving 120. The closing balance is therefore 120. The last row is a reported total, not another change to add to the previous amount.

Use positive numbers for increases and negative numbers for decreases. Keep categories in the order you want people to read them; the chart follows the table’s sequence. Avoid blank rows in the middle of the data, since an empty category can create an unwanted gap or complicate selection. If you have more than one period, build a separate sequence for each period or make clear which period the displayed figures represent.

Create the chart in Excel for Microsoft 365

Enter the category names and amounts in adjacent columns, including the headings.
Select the full range, including the headings. For example, select A1:B6 if the labels are in A1:A6 and values are in B1:B6.
On the ribbon, choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall.
Check that the horizontal axis shows the categories and that the bars reflect the intended order and sign of each amount.
Set the opening and closing bars as totals, then add a chart title and adjust formatting for readability.

The exact chart button can appear as an icon in the Charts area of the Insert tab. If the chart initially uses the wrong orientation, select it and use Chart Design > Switch Row/Column. For a two-column category-and-value list, Excel will usually interpret the data in the intended orientation without that adjustment.

These instructions describe Excel for Microsoft 365 on Windows. Excel for Mac also includes a Waterfall chart; the chart command is on the Insert tab, though ribbon placement and wording can vary with the app version. In Excel for the web, chart availability and editing controls can differ, so use the desktop app if you cannot find the chart type or its total-setting command.

Mark the opening and ending amounts as totals

Excel’s Waterfall chart can calculate the visual running sequence for the change bars, but a beginning balance or ending balance is often intended to stand alone as a full-column total. Select the relevant bar, right-click it, and choose Set as Total. Repeat for the ending bar. Depending on the version and selection method, you may need to click once to select the series and again to select the individual data point before right-clicking.

For the example, set Opening balance and Closing balance as totals. The intermediate bars then show the changes between those reference amounts. If the final column appears to continue upward or downward from the prior step instead of starting at zero, it has probably not been marked as a total. The same setting is useful for intermediate subtotals, such as a gross-profit figure between revenue and later expenses.

To change a total back to an ordinary increase or decrease, select its bar and clear Set as Total in the context menu. This setting belongs to the chart point, not the number in the worksheet. If you replace the data with a different sequence, review the total settings again rather than assuming that the new rows have inherited the intended meaning.

Make the chart clear and readable

A useful waterfall chart should make the direction and scale of each step easy to understand. Select the chart and use the Chart Design and Format tabs for chart-level changes. Available controls depend on the selected chart element, so click the title, axis, data series, or an individual bar before applying a format.

Use an informative title. Name the measure and, where relevant, its period, such as Quarterly operating profit bridge.
Keep category labels concise. Long labels can crowd the horizontal axis. Widen the chart or shorten labels without losing their meaning.
Use color deliberately. If you format increases and decreases differently, keep that convention consistent and retain enough contrast for the bars to be distinguishable.
Show values when they help. Select the chart and use Chart Design > Add Chart Element > Data Labels to add labels. Remove unnecessary labels if they overlap or make the chart busy.
Check the vertical scale. A truncated axis can exaggerate modest changes. Use a scale that supports a fair comparison and does not obscure the chart’s message.

Color alone should not be the only way to communicate meaning. Labels, a clear title, and the visible direction of the bars also help readers interpret the chart. If the chart will be printed in grayscale or shared with people who may have difficulty distinguishing colors, preview it in that form.

Save it as a reusable Excel template

Once the chart and input area are ready, keep a clean copy before entering live figures. Choose File > Save As, select the location, and choose Excel Template (*.xltx) as the file type. An .xltx file is a workbook template; opening it normally creates a new workbook based on the template rather than changing the original file. If the workbook contains macros, use the macro-enabled template format instead and follow your organization’s security rules.

Make the template safer and easier to reuse by separating instructions from the data area. Label cells where users should replace values, state the units (for example, thousands of dollars), and identify which rows are totals. If you use sample numbers to demonstrate the layout, label them clearly so they are not mistaken for current results. Consider leaving the chart in place and replacing only the input values and category names.

Before sharing a template, check that the chart updates when the sample figures change. If you expect users to add rows, test that workflow too: a chart based on a fixed selected range may not include newly appended categories automatically. One option is to build the source data as an Excel table using Insert > Table, then verify the chart’s source range and behavior with the version of Excel your readers use.

Common problems and how to fix them

The closing amount is wrong. Check the arithmetic outside the chart: opening amount plus all changes should equal the closing amount. Confirm that decreases have negative signs and that no row is missing or counted twice.
A total floats instead of starting at the baseline. Select that specific bar and apply Set as Total. A displayed number alone does not tell Excel that the point is a total.
Every bar starts at zero. Confirm that you inserted a Waterfall chart rather than a standard column chart. A standard column chart does not show the running accumulation in the same way.
Categories and values are reversed. Check the selected range and, if necessary, use Chart Design > Switch Row/Column.
The labels are missing or hard to read. Confirm that the category column was included in the selected range. Widen the chart, shorten labels, or adjust label formatting.
The chart does not include newly added rows. Review the chart’s data source and extend it to cover the new rows. Test the template after changes rather than assuming a fixed range will expand.

One common misconception is that the chart itself verifies the underlying calculation. It does not. A waterfall visualization can look plausible even when a sign is wrong, a category is omitted, or the stated closing figure does not reconcile. Reconcile the numbers in the worksheet before using the chart to explain a result.

When to use another chart or method

A native Excel Waterfall chart is a good fit when the point is to explain a series of contributions to a total. It is less suitable when the main goal is to compare unrelated values across many categories, show changes over time at regular intervals, or visualize a complex process with multiple branches. A bar chart can make category comparisons easier; a line chart is often more appropriate for a continuous time trend.

For a highly customized bridge with unusual grouping, multiple subtotals, or specialized labeling, you can construct a stacked-column chart from helper data. That approach offers more control over the invisible offset and visible change segments, but it requires more setup and maintenance than the built-in Waterfall chart. Use it only when the native chart cannot communicate the required structure clearly.

If someone asks for a waterfall template, they may mean a financial bridge, a project plan, or a cash movement summary. The chart mechanics are similar, but the categories and definitions should fit the subject. For example, a cash bridge should distinguish cash inflows and outflows from non-cash accounting adjustments instead of treating every figure as interchangeable.

Frequently Asked Questions

Does Excel have a built-in waterfall chart?

Yes. Excel for Microsoft 365 includes a Waterfall chart type. Select the source data and use Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Some ribbon layouts may present the chart choices as a menu or icon.

How do I make the last bar show the final total?

Select the final bar in the chart, right-click it, and choose Set as Total. If the bar still floats, make sure you selected the individual data point and not only the entire data series.

Can I download a ready-made Excel waterfall template?

Templates may be available from Microsoft and other sources, but their layouts and compatibility vary. You can also create one in Excel and save it as an .xltx file. Check any downloaded workbook’s formulas, data, and source before using it for real reporting.

Why do some waterfall bars go up and others go down?

Positive amounts represent increases and negative amounts represent decreases. Excel positions each change relative to the running value from the previous steps. Check the sign and category for any bar that moves in an unexpected direction.

Can a waterfall chart show subtotals?

Yes. Select the relevant chart point and choose Set as Total to make it a standalone subtotal. Use this for meaningful checkpoints, and label them clearly so readers can distinguish totals from ordinary changes.

Try it: the Percentage Formula Generator: percent of, percent change, increase and decrease, with the formula.

More in Charts & pivot tables

Sources: Function behaviour and menu paths: Microsoft Support documentation for Excel. Method & sources

Spotted an error in this guide? Let us know.