How to Create a Waterfall Chart in Excel

To create a waterfall chart in Excel, arrange your categories and positive or negative changes in two columns, select the data, then choose Insert > Insert Waterfall, Funnel, Stock, Surface, or Radar Chart > Waterfall. Mark the starting and ending values as totals so Excel shows how each change builds to the final result.

A waterfall chart, sometimes called a bridge chart, makes a running total visible. It is useful for explaining how a starting amount changes through increases and decreases, such as how revenue becomes profit or how a budget balance changes over time. The instructions below are for Microsoft Excel for Microsoft 365 on Windows. You will need a small, clearly structured data table; no formulas are required for a basic chart.

What You’ll Need

Excel for Microsoft 365 on Windows. The desktop versions of Excel for Mac also offer waterfall charts, though ribbon placement can vary slightly. If you are using Excel for the web and cannot find the chart type, open the workbook in the desktop app.
A list of categories and one numeric value for each category. Changes should be positive for increases and negative for decreases.
A starting value and, ideally, a final total that you can check against the changes.

Step-by-Step

Decide what the chart should explain. Choose a beginning point, the changes that happen in between, and the ending point. For example, a simple revenue bridge could start with 10,000, add 4,000 in new sales, subtract 1,200 in returns, subtract 2,500 in operating costs, add 800 in other adjustments, and finish at 11,100. The arithmetic is 10,000 + 4,000 − 1,200 − 2,500 + 800 = 11,100. This kind of check helps you catch incorrect inputs before making the chart.
Enter the data in two columns. Put a clear heading such as Category in A1 and Amount in B1. Enter the beginning value in the first data row, then list each change on its own row. Put the ending value in the last row. For the example, the categories are Starting revenue, New sales, Returns, Operating costs, Other adjustments, and Ending revenue; their corresponding values are 10000, 4000, -1200, -2500, 800, and 11100. The first and last values are balances, while the middle values are changes.
Check the signs and data types. Increases need positive numbers and decreases need negative numbers. Enter numbers as values rather than typing them as text. Currency symbols and thousands separators can be applied with number formatting after entry. Avoid leaving blank rows inside the data range, since Excel may treat a blank as a category or create an unwanted gap.
Select the complete table. Drag across both columns, including the headings and all category rows. In the example, select A1:B7. Including the category labels gives Excel names for the columns rather than generic labels. Do not select unrelated notes or totals that are not meant to appear in the chart.
Insert the waterfall chart. On the ribbon, choose Insert > Insert Waterfall, Funnel, Stock, Surface, or Radar Chart > Waterfall. Excel inserts a chart using the selected data. If the chart is not in the first visible group of chart buttons, look for the chart-type menu in the Charts group on the Insert tab. In Excel for Mac, select the data and use the Insert tab’s Waterfall chart option; the precise location can differ with the ribbon layout.
Set the beginning balance as a total. The starting amount should usually appear as a full column from the horizontal axis, not as a change floating above or below an earlier amount. Click the starting column once to select the series, then click that same column again to select only that data point. Right-click it and choose Set as Total. In Excel for Mac, Control-click or right-click the selected point and choose the equivalent Set as Total command if shown. If Excel has already treated it as a total, you do not need to set it again.
Set the ending balance as a total. Repeat the point-selection process on the final column and choose Set as Total. This anchors the final value to the axis and visually distinguishes it from the intermediate changes. Check that the final bar shows 11,100 in the example, rather than appearing as another increase of 11,100. If the starting or ending bar floats, the point has not been set as a total.
Add a title and useful labels. Select the chart, then use Chart Design > Add Chart Element > Chart Title to add or position a title. Choose Chart Design > Add Chart Element > Data Labels if readers need to see the values on the columns. You can also use the green Chart Elements button beside a selected chart in Windows. Use a descriptive title such as Revenue Changes, and make sure labels are legible and do not overlap. If the category names are long, widen the chart or shorten the labels in the source table.
Format the chart and verify it. Select the vertical axis or a data label to format numbers as currency, percentages, or another suitable number style. Use the chart formatting options to adjust colors, fonts, and spacing. Excel normally uses different colors for increases, decreases, and totals; keep those distinctions clear. Finally, check every bar against the source values and confirm that the final total matches your arithmetic. If you edit a number in the selected source range, the chart should update automatically.

Common Mistakes

Leaving the ending value as a change. The last row is often a balance, not an additional movement. If it is not set as a total, Excel adds it to the previous running value, which makes the chart misleading. Set both the starting and ending points as totals when they represent balances.

Using the wrong sign for a change. A cost entered as a positive value raises the running total; a refund entered as a positive value also raises it, even if your intended story is a decrease. Review each row from the perspective of the starting balance and confirm that the sign matches the direction of the movement.

Including the final balance twice. Do not add a separate calculation row after the final balance and include both in the chart unless both are meaningful categories. A duplicate total can create a confusing extra column. Keep the chart input range limited to the beginning balance, changes, and one ending balance.

Expecting Excel to infer every subtotal. Excel may recognize some totals automatically, but intermediate subtotals are not always inferred as intended. If a row represents a subtotal, select its individual column and choose Set as Total. Confirm that each total starts at the axis rather than floating as a change.

Choosing a chart when the categories are not a sequence. Waterfall charts communicate a progression. They are not ideal when you only want to compare unrelated values, such as sales across independent products. A bar or column chart may make those comparisons easier to read.

Tips

Keep the source table simple and in the same order as the story you want to tell. Arrange steps chronologically or group related changes, and use category names that explain what each movement represents. If you need to change the order later, move the corresponding rows in the source table and check the chart again.

Use consistent number formats. If the chart is about money, show the same currency and decimal precision throughout; if values are in thousands, say so in the axis title or chart title. Avoid cluttering every column with long data labels. Labels are most helpful when readers need exact values, while a clear axis may be enough for a high-level presentation.

For a reusable chart, keep the input table together and avoid empty rows between its headings and data. You can make the range easier to manage by converting the data to an Excel table with Insert > Table, but check that the chart includes only the intended rows. When you add categories, verify that the chart’s source range expands as expected.

Consider adding a note beside the chart to explain an unusual adjustment or a change in measurement basis. Do not rely on color alone to communicate meaning: use descriptive labels and, where useful, data labels. Before sharing the workbook, check the chart at the size at which it will be viewed, especially if category labels are long or values are close together.

Troubleshooting

The Waterfall option is missing. Confirm that you are using a recent desktop version of Excel and that the Insert tab is open. The chart option may be inside the combined chart-type menu rather than displayed as a separate button. If you are working in a browser or an older Excel release and the option is unavailable, open the workbook in Microsoft 365 desktop Excel or use a regular column chart as an alternative.

The chart treats all values as increases or shows an unexpected direction. Inspect the source values for negative signs and confirm that the cells contain numeric values. A number stored as text may not behave as expected. Select the source cells and apply a number format if needed, then re-enter any text-formatted numbers as numeric values.

The total column floats instead of starting at the axis. Select the individual column, not the whole series, and choose Set as Total from its context menu. Clicking once selects all columns; clicking the same point again selects just that point. Repeat for each starting, ending, or subtotal balance that needs to anchor to the axis.

The category names or values are missing. Right-click the chart and choose Select Data to check the chart’s source range and category labels. Make sure the selected range includes both columns and the appropriate rows. If the categories appear in the wrong order, correct the source table order or use the chart’s data selection controls.

The chart is hard to read. Widen the chart, reduce the number of displayed labels, or shorten category names in the source data. If the axis scale makes small changes difficult to see, select the axis and review its formatting, but do not adjust the scale in a way that exaggerates the movements. Check the result against the actual values before presenting it.

Frequently Asked Questions

Can Excel make a waterfall chart automatically?
Yes. Select the category and value columns, then choose the Waterfall chart type from the Insert tab. You may still need to mark the first, last, or subtotal columns as totals.

Do I need formulas to create a waterfall chart?
No. A basic chart can use typed starting, change, and ending values. Formulas can help calculate a final balance, but the chart itself does not require them.

Can I show subtotals in the middle of a waterfall chart?
Yes. Select the relevant column as an individual data point, right-click it, and choose Set as Total. This makes the subtotal start from the axis instead of continuing from the prior change.

Why does my final bar look like an extra increase?
Excel is treating the final balance as a change. Select that bar alone and choose Set as Total. Also confirm that the value is the actual ending balance and not an additional movement.

Can I change the colors for increases and decreases?
Yes. Select the chart and use the formatting options on the ribbon, or select a data point to format it individually. Keep colors consistent and ensure the chart remains understandable when printed or viewed without color.

Will the chart update when I change the data?
It normally updates when you edit a value inside its source range. If you add new categories outside the range, use Chart Design > Select Data to expand the range, or use a well-maintained Excel table and verify that the new rows are included.

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

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

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