How to Make a Waterfall Chart in Excel

To make a waterfall chart in Excel, arrange your categories and positive or negative changes in two columns, select the data, then choose Insert > Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Mark the opening and closing values as totals so the chart shows how each change moves the running balance. The steps below use Excel for Microsoft 365 on Windows.

A waterfall chart, sometimes called a bridge chart, explains how a starting value changes through a series of additions and deductions to reach an ending value. It is useful for cash movement, sales performance, project budgets, headcount, and other explanations where the intermediate changes matter. It is not the same as a regular column chart: the change bars “float” between cumulative values rather than all beginning at zero.

What You’ll Need

Excel for Microsoft 365 on Windows, with a worksheet containing one column of category names and one column of numbers. The built-in Waterfall chart is also available in recent Excel desktop editions; older versions may not include it.
A clear decision about which entries are changes and which are subtotals or totals. Changes should be positive for increases and negative for decreases.
For the example below, use this sequence: Opening cash, 1000; Sales, 450; Refunds, -80; Rent, -300; Payroll, -220; Other, 50; Closing cash, 900. The changes add up correctly: 1000 + 450 – 80 – 300 – 220 + 50 = 900.

Step-by-Step

Set up the source data. Put the category names in column A and their values in column B, with descriptive headers in row 1. For example, A1 can be Category and B1 can be Amount; place Opening cash and 1000 in row 2, then list the five changes and Closing cash beneath them. Keep the categories in the order you want them to appear. Do not add a running-balance column: Excel calculates the cumulative positions from the changes. Use real numeric values, not numbers typed as text, and enter deductions with a minus sign.
Select the data range. Select both headers and all category/value rows, such as A1:B8 for the example. Including the headers helps Excel label the chart and its vertical axis. If you have other notes or calculations nearby, do not include those cells. A non-adjacent selection is usually unnecessary for a basic waterfall chart, so keep the source table contiguous.
Insert the waterfall chart. On the ribbon, choose Insert > Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Excel inserts the chart on the worksheet and uses the first column as categories and the second as values. If the ribbon is narrow, the chart menu may appear as a compact icon; open the chart-type menu and select Waterfall. If the command is unavailable, check the Excel version and consider opening the workbook in the desktop app.
Set the opening value as a total. Click the first column in the chart once to select the series, then click the Opening cash column again to select only that data point. Right-click it and choose Set as Total. This makes the column start at zero and rise to 1,000 instead of treating 1,000 as a change added to an invisible starting balance. The bar should appear anchored to the horizontal axis.
Set the closing value as a total. Repeat the same selection for the Closing cash column: click the series, click that individual bar, right-click, and choose Set as Total. The last bar should show the final balance of 900 from zero. If the closing value remains an ordinary change, Excel will add it to the running balance and the chart will imply an incorrect result. You can mark any other subtotal or checkpoint as a total in the same way.
Check the running sequence. Read the chart from left to right. The opening total is 1,000; Sales raises the balance to 1,450; Refunds lower it to 1,370; Rent lowers it to 1,070; Payroll lowers it to 850; and Other raises it to 900. The Closing cash total should therefore match 900. If it does not, inspect the source values, signs, category order, and which bars are set as totals before changing the chart’s appearance.
Add a useful chart title and labels. Select the chart, then use Chart Design > Add Chart Element to add a Chart Title or Data Labels. You can also use the Chart Elements button beside a selected chart where it is available. Give the chart a specific title such as Cash movement from opening to closing. Data labels make individual changes easier to read, particularly when bars are small, but can crowd a chart with many categories. If you add labels, check that they do not overlap.
Format the chart for quick reading. Use Chart Design > Chart Styles to try a built-in style, or use the Format tab to adjust selected elements. Excel normally distinguishes increases, decreases, and totals with separate colors. Keep those roles visually distinct and use a readable number format, such as currency if the values are money. To change a bar’s color, select that individual bar and use the formatting controls for the data point; avoid making all bars the same color if that removes the visual distinction between increases and decreases.
Resize and position it, then save. Drag a chart corner to resize it, and leave enough width for category labels. If labels are cut off, widen the chart or shorten the category text in the source cells. Save the workbook after checking that the source table and chart are both clear. Keeping the source data on the same sheet, or on a clearly named data sheet, makes later updates easier.

On Excel for Mac, the chart type is also available from the Insert tab’s chart options, though the ribbon layout can differ from Windows. To mark totals, select the individual point and use its context menu or the Format Data Point pane to enable Set as total. In Excel for the web, chart creation and formatting options can vary with the current interface; if you cannot find the waterfall type or total-point setting, choose Open in Desktop App and finish the chart there.

Common Mistakes

Leaving a total as a change: This is the most important setup error. An opening or closing balance left as an ordinary change is added to the cumulative sequence instead of being anchored from zero. Use Set as Total for every opening, closing, or subtotal that represents a balance rather than a movement.

Using the wrong sign: A cost entered as a positive number rises rather than lowers the running balance. Check each movement against what it represents. Refunds, expenses, and reductions are usually negative; income and additions are usually positive. Do not make every value positive just because the chart’s vertical axis is positive.

Including a running-balance column: The waterfall chart expects a series of changes, with totals identified separately. If you supply both changes and cumulative balances as if they were movements, Excel adds values that should not be added together. Keep the source to one value per category, and mark balance rows as totals.

Selecting extra cells or omitting labels: A blank row, unrelated data, or extra numeric column can make Excel assign the wrong chart series. Select just the category and amount columns. If the chart shows generic category numbers, check that the category-name cells were included and that the first row contains the intended headers.

Overloading the display: Too many categories, long labels, or data labels on every tiny bar can make the chart hard to interpret. Group minor movements where it is appropriate for the analysis, use concise labels, and consider a larger chart area. Do not combine entries in a way that hides a material change.

Tips

Use category names that tell readers what happened, not just internal shorthand. Labels such as New customers, Price changes, and Returns are more informative than Change 1 or Adjustment. Keep the order meaningful: a waterfall chart follows the worksheet order, so arrange entries in a logical sequence rather than expecting Excel to sort them automatically.

Use the same unit throughout the chart. Mixing dollars with thousands of dollars, or percentages with counts, makes the visual misleading. If values are large, format them consistently and explain any scaling in the title or axis label. For example, use a title that says Values in thousands if you have divided the source amounts by 1,000.

For a chart that will be updated, add new movements inside the source range or convert the source table into an Excel table using Insert > Table. Table-backed charts can include appended rows when the chart’s source expands with the table, but confirm that the new rows are included and preserve the correct first and final totals. Recheck the running result after each update; changing a movement does not automatically tell Excel that a newly added subtotal should be a total.

Think about the audience before adding decoration. A restrained color scheme, clear title, and legible labels usually communicate the bridge better than extensive gridlines or effects. If the exact values matter, leave data labels on or provide a nearby data table; if the overall direction matters most, simplify the labels and keep the chart uncluttered.

Troubleshooting

The chart option is missing: Verify that you are using a recent Excel desktop version and that the Insert tab is active. Some older editions do not offer the built-in Waterfall chart. If you are in a browser or using a compact ribbon, try opening the file in Excel for Microsoft 365 on Windows and look under Insert’s chart options.

A column is floating when it should start at zero: Select that single bar, not the entire series, and apply Set as Total. If the right-click menu does not show the command, click the bar once to select the series and again to select the point, then open the Format Data Point pane and look for Set as total.

The final result is incorrect: Recalculate the example or your own sequence independently by adding the signed changes to the opening value. Check for values stored as text, omitted rows, duplicate entries, or a closing balance that is not marked as a total. Also confirm that Excel has not included an unintended column or row in the selected range.

Bars or labels are hard to read: Widen the chart, shorten category labels, or reduce the number of displayed data labels. If the vertical scale makes modest changes look invisible, select the vertical axis and adjust its bounds carefully; include a scale that does not exaggerate the movements. Restoring automatic bounds is an option if manual limits make the chart confusing.

Changes do not appear after editing the table: Confirm that the chart’s source range includes the edited cells. If you added rows below a normal range, the chart may not expand automatically. Update the range through Chart Design > Select Data, or use an Excel table as the source and verify that the chart includes the new entries. Then confirm that opening, closing, and subtotal points still have the intended total settings.

Frequently Asked Questions

What is a waterfall chart used for?
It shows how a starting amount changes through a sequence of increases and decreases to reach an ending amount. It is especially useful when the individual movements explain the difference between two totals.

Can Excel make a waterfall chart automatically from my data?
Excel can create the chart from a category column and a value column, but you should identify opening and closing balances and mark them as totals. Excel does not know from the numbers alone which rows are movements and which are subtotal or balance points.

Why does my ending bar show the wrong amount?
Often the closing balance is being treated as another change, a movement has the wrong sign, or a row was left out of the selected source range. Confirm the arithmetic and mark the closing balance as a total.

Can I show subtotals in the middle of a waterfall chart?
Yes. Add a row for the subtotal value, select that bar in the chart, and choose Set as Total. Make sure the later movements continue from the subtotal as intended, and check the final arithmetic.

Can I create a waterfall chart in Excel for Mac or Excel for the web?
Recent Excel versions for Mac include waterfall chart options, although the ribbon layout differs from Windows. Web features can vary; use the desktop app if you cannot find the chart type or the Set as Total control.

Does a waterfall chart update when I edit the source data?
Yes, values in the chart’s source range update the plotted bars. Added rows may need to be included in the chart range, and any new balance or subtotal bars must be marked as totals.

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.