Microsoft Excel Waterfall Chart: Create and Format One

To create a waterfall chart in Microsoft Excel for Microsoft 365 on Windows, select a table with category labels and change values, then choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. The chart shows how positive and negative changes build from a starting amount to a result; mark starting, ending, or other subtotal bars as totals so they begin at the baseline.

What a waterfall chart shows

A waterfall chart, sometimes called a bridge chart, explains how a sequence of increases and decreases moves a value from one amount to another. Each change is drawn as a floating column: its position reflects the running total, while its height represents that category’s increase or decrease. Connector lines help show the steps between columns.

This is useful when readers need to understand the components behind a net change rather than only compare beginning and ending values. Common examples include a monthly cash movement, a budget variance, revenue changes by product, or the steps from gross profit to net profit. A regular column chart is usually better when the goal is simply to compare independent values, such as sales across regions.

Prepare the source data

Arrange the data in two adjacent columns: a label for each step and a numeric value for its change. In a basic waterfall, increases are positive numbers and decreases are negative numbers. The chart uses the order of the rows as the sequence of events, so put them in the order you want the story told.

Use a clear label for the opening amount, each change, and the final amount.
Enter amounts as numbers, not text such as “+$80” or “($35).” Format the cells as currency or numbers afterward.
Avoid blank rows within the data range; they can create empty categories or make the chart harder to read.
Check that the changes reconcile to the final amount. A mismatch may indicate a missing item, a sign error, or a value entered twice.

For example, a cash bridge could use these rows: Opening cash, 100; Customer receipts, 80; Payroll, -35; Rent, -20; Equipment, -15; Closing cash, 110. The arithmetic is 100 + 80 – 35 – 20 – 15 = 110. The opening and closing rows are balances, not changes, so you must identify them as totals in the chart.

Create the chart in Excel

Enter the category names in one column and their values in the next, including the opening and closing amounts.
Select both columns, including their headings if present.
On the ribbon, select Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall.
Check that the horizontal axis shows the labels in the intended order and that the bars correspond to the right values.
Set the opening and closing balance bars as totals, and set any intermediate subtotal bars as totals if your data includes them.

If Excel places categories and values in the wrong orientation, select the chart and use Chart Design > Switch Row/Column. This is more likely when the data is laid out across rows rather than down columns. The command changes how Excel interprets the selected range; it does not alter the source values.

Set opening balances, endings, and subtotals

Excel cannot infer from a number alone whether it represents a change or a balance. A positive opening balance of 100 would otherwise be treated like an increase from zero, and a closing balance of 110 could be added to the running total instead of shown as the final result. Mark these bars as totals to make them start from the chart’s baseline.

To do this, select the individual bar, right-click it, and choose Set as Total. If the first click selects the whole series, click the same bar again to select that single data point, then right-click. Repeat for the ending balance and any subtotal that should start at zero. To change a bar back to an ordinary increase or decrease, use the same context-menu command to clear its total status.

A subtotal can be helpful when the sequence has meaningful phases—for instance, showing a department subtotal before continuing with company-wide adjustments. But do not mark every step as a total: ordinary changes need to float from the previous running amount for the bridge to work.

Format the chart for clear reading

Useful formatting makes the chart easier to interpret without changing its arithmetic. Select the chart and use Chart Design > Add Chart Element to add a chart title or axis title where appropriate. A descriptive title such as “Cash movement, January” says more than “Waterfall Chart.” If the units are not obvious, label the vertical axis, for example “Dollars.”

To change the appearance of a particular bar, select that data point, right-click, and choose Format Data Point. In the formatting pane, adjust its fill or border. Excel distinguishes increases, decreases, and totals with different default colors; the exact theme colors can vary. Keep a visible distinction among those three roles, and do not rely on color alone if the chart may be printed in grayscale or viewed by people with color-vision differences.

Connector lines can help readers follow the running total from one change to the next. Select a bar in the series, open Format Data Series, and use the connector-line option if it is available for the chart. Also consider reducing unnecessary gridlines, keeping category labels concise, and using consistent number formatting. Very long labels or many small steps can crowd the horizontal axis; shortening labels or splitting the analysis into related charts may be clearer than shrinking the text.

Worked example: a cash movement bridge

Using the example values above, Excel should show opening cash at 100, then a rise to 180 after customer receipts, a fall to 145 after payroll, a fall to 125 after rent, and a fall to 110 after equipment. The closing cash bar should show 110 from the baseline, not float as a further decrease from the previous step. Set Opening cash and Closing cash as totals to communicate that distinction.

This example also illustrates an important reading rule: the height of a change bar is not the running balance. The equipment bar represents a decrease of 15, while its lower endpoint lands at the final balance of 110. If readers need to see the exact values, add data labels where they remain legible or include the source table near the chart. Labels for every small movement can make a busy chart difficult to scan.

Common problems and how to fix them

The final bar is far from the expected result: Check whether the ending balance was accidentally treated as a change. Set it as a total, and verify the signs and arithmetic in the source data.
A decrease appears to rise: Confirm that the source value is negative. Display formatting may show parentheses or a minus sign, but the underlying cell still needs to contain a negative number.
The first bar does not start at zero: Select that individual data point and choose Set as Total. Excel does not know whether a first value is a balance or a change just from its label.
Categories or values are missing: Check the range selected for the chart, remove unintended blank rows, and confirm that category labels and numeric values occupy the expected columns.
The chart is hard to read: Reduce the number of categories, shorten labels, clarify units, or split a long sequence into separate stages. A waterfall is not automatically clearer than a table when there are many tiny movements.

Excel versions and alternatives

Waterfall charts are built into Excel 2016 and later desktop versions, including Microsoft 365. In current Excel for Mac, use the Insert tab’s chart controls to insert a Waterfall chart; ribbon placement can differ from Windows. Excel for the web may present chart editing options differently from the Windows desktop app, so use the desktop version if a required formatting control is not available in your interface.

If you need to share the workbook with someone using an older Excel release, check the chart in that version before relying on it. A version that predates built-in waterfall charts may not support editing the chart as a native waterfall. A stacked-column workaround can imitate some bridge charts, but it takes more setup, can be awkward with both positive and negative changes, and is less straightforward to maintain. For a simple comparison of separate values, use a regular column chart; for a detailed interactive business dashboard, a dedicated reporting tool may be more suitable.

Frequently Asked Questions

Can Excel make a waterfall chart automatically?
Yes. Select the category and value data, then choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. You still need to mark opening balances, closing balances, and subtotals as totals when they represent fixed levels rather than changes.

Why does my total look like another increase or decrease?
Excel initially interprets the plotted values as changes unless you identify a data point as a total. Right-click that bar and choose Set as Total. This is especially important for the first and last balance in a bridge.

Can a waterfall chart show subtotals?
Yes. Select the subtotal bar and choose Set as Total. It will start at the baseline while later increases and decreases continue from the running amount represented by the sequence.

What is the difference between a waterfall and a column chart?
A column chart compares values that usually share a common baseline. A waterfall chart shows how sequential positive and negative changes add to or subtract from a running value. Use the waterfall when the path between the beginning and ending amounts matters.

Can I use a waterfall chart in Excel for Mac?
Current Excel for Mac includes waterfall chart support. Use the Insert tab’s chart options to find it; the command placement and formatting pane can differ from Excel for Windows.

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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