How to Plot a Waterfall Chart in Excel Step by Step

To plot a waterfall chart in Excel, arrange your categories in one column and the changes in value in the next, select the data, then choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Mark the opening balance, closing balance, and any subtotals as totals so the chart shows how each increase and decrease builds to the final result.

What You’ll Need

Microsoft Excel for Microsoft 365 on Windows. Waterfall charts are also available in recent desktop versions of Excel, including Excel 2016 and later.
A small table with one category per row and its value or change beside it. Use positive numbers for increases and negative numbers for decreases.
A clear idea of which rows are starting values, ending values, or intermediate subtotals. Those points need to be displayed as totals rather than changes.

A waterfall chart is useful for explaining how a starting amount changes over a sequence of additions and deductions. Common examples include a profit bridge, a project budget, inventory movement, and changes in monthly cash. Unlike a standard column chart, its intermediate bars float between the previous and new running totals, making the contribution of each change easier to follow.

Step-by-Step

Arrange the data in two columns. Put category names in the first column and values in the second, with a descriptive header above each. Use one row for every step in the story, in the order you want viewers to read it. Avoid blank rows and merged cells in the selected range. For example, enter Beginning balance, New sales, Operating costs, Fees, and Ending balance in A2:A6, with 100, 40, -25, -10, and 105 in B2:B6. The arithmetic checks out: 100 + 40 – 25 – 10 = 105. The ending balance is the result, not an additional change to add to the prior balance.
Check signs and units before charting. In the example, sales are positive because they raise the balance; costs and fees are negative because they lower it. Keep every number in the same unit, such as dollars or thousands of dollars, and decide how to handle rounding before charting. If your source data contains costs as positive amounts, change their signs in the chart’s input table or make a separate, chart-ready table. Otherwise, Excel will draw those costs as increases.
Select the chart data. Select both columns, including the headers, for example A1:B6. Include only the rows that belong in the chart. If the table is separated by unrelated notes or extra totals, make a clean two-column range elsewhere rather than selecting scattered cells. A chart based on one numeric column and one category column is easiest to interpret and update.
Insert a waterfall chart. On the ribbon, choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Excel inserts a chart using the selected category labels and values. If the chart button is not visible in a compact ribbon, look in the Charts area of the Insert tab or expand the chart dropdown. On Excel for Mac, use the Insert tab and choose the Waterfall chart from the chart-type menu; the command wording and ribbon layout can vary slightly by release.
Set the opening balance as a total. Click the first column once to select the series, then click that same column again to select just the data point. Right-click it and choose Set as Total. The column should now start at the chart’s baseline instead of floating. If you selected the whole series, the menu may not offer the point-specific command; click the column again or right-click and use Format Data Point to confirm you are working with one point. On a Mac, Control-click the point if you do not use a right mouse button.
Set the ending balance as a total. Repeat the point-selection process for the last column and choose Set as Total. The closing value will then be shown as a full-height total from the baseline. Do not set every row as a total: the intermediate sales, costs, and fees should remain floating changes so the bridge adds up correctly.
Mark any subtotal rows. If your table includes a milestone such as “Quarter 1 total” between two groups of changes, click that column twice, right-click, and choose Set as Total. For example, a chart might show a starting balance, several first-quarter changes, a first-quarter subtotal, several second-quarter changes, and a final balance. The subtotal is anchored to zero, while the changes after it continue from that subtotal. Check the running arithmetic around each subtotal to make sure it represents the intended checkpoint.
Check the chart’s reading order and labels. Confirm that the category labels run left to right in the intended sequence and that the first and last totals are anchored to the baseline. To add value labels, select the chart, then choose Chart Design > Add Chart Element > Data Labels and select a position. If labels overlap or make small bars hard to read, remove them from the smallest changes or enlarge the chart. Add a concise chart title by selecting the title area and typing a useful description, such as “Changes in project budget.”
Format the chart for clarity. Select the chart to use Chart Design and Format. Use a clear number format, readable category labels, and a restrained color scheme. Excel distinguishes increases, decreases, and totals with separate series colors; if you change them, keep each meaning consistent. To change a color, select a data point and use Format Data Point > Fill & Line. If category names are long, widen the chart or shorten the labels in the source table rather than shrinking the text until it is difficult to read.
Verify the result against the table. Follow the bars from left to right and check that each change moves the running level in the expected direction. The final total should agree with the opening value plus all intervening changes. Confirm that each intended subtotal and endpoint is set as a total, and inspect the vertical axis for a sensible scale. Save the workbook after checking the chart, especially if it will be shared or used in a report.

When you update the source values, the chart normally updates with them because it is linked to the selected cells. If you add new categories below the original range, check whether the chart includes those rows; depending on how the source data was selected, you may need to extend its data range. For a table that will grow regularly, converting the source range to an Excel table with Insert > Table can make the data easier to maintain, but still verify the chart after adding rows.

Common Mistakes

Entering the final balance as another change. If the chart should finish at 105, the last row represents a total of 105, not an extra increase of 105. Set that point as a total; otherwise it may be treated as a change and added to the running level.
Leaving the first or last point floating. A starting balance or ending balance shown as a change does not communicate the full amount clearly. Set each endpoint as a total, then check that it begins at the baseline.
Using the wrong sign. A negative expense lowers the running total. If you enter it as a positive number, the bar will rise. Check the source table rather than trying to correct the visual direction with formatting.
Setting ordinary changes as totals. A total column resets to the baseline. If you mark every point as a total, the chart stops showing the step-by-step movement. Reserve this setting for genuine starting values, ending values, and checkpoints.
Mixing totals and changes without labeling them. A subtotal can look like a change if its category name is vague. Use names such as “Opening balance,” “Quarter 1 subtotal,” and “Closing balance” so readers can tell which values are checkpoints.
Making the chart too crowded. Long labels, too many data labels, and many tiny categories can make a waterfall difficult to scan. Split a very detailed story into separate charts or summarize minor changes, while preserving the totals and arithmetic.

Tips

Build the chart-ready table in the same order as the explanation you want to give. Waterfall charts tell a sequence, so category order matters even when the source data is sorted differently.
Use a short, descriptive title and label units in the title or a nearby note. For example, say “Budget changes ($000s)” if values are entered in thousands rather than individual dollars.
Use consistent colors for increases, decreases, and totals. Color should support the direction of movement, not replace signs or clear labels.
Keep the source table visible near the chart when readers may need to verify individual amounts. A chart is easier to audit when its values and categories can be compared directly with the underlying data.
For a presentation, consider removing unnecessary gridlines and adding labels only where they improve understanding. Preserve enough axis context that viewers can interpret the size of the changes.
If you need multiple checkpoints, plan them in the input table before formatting. This makes it easier to identify which rows must be marked as totals and reduces the chance of leaving a subtotal floating.

Troubleshooting

The chart option is unavailable or greyed out: Check that you selected a range containing category labels and numeric values, and that the workbook is open in a desktop Excel version that supports waterfall charts. If the data is in separate, nonadjacent ranges, copy it into a simple two-column table and select that range. In Excel for the web, chart options can differ from the desktop ribbon; if you cannot create or format the chart there, open the workbook in the desktop app.

Bars all start at zero, or the chart looks like ordinary columns: Check whether the chart type is actually Waterfall, then select each intermediate point and make sure it is not set as a total. A floating change should connect the previous running level to the next one. If the bars still look wrong, verify that the values are numeric rather than text and that their signs are correct.

The ending value is wrong: Recalculate the sequence from the beginning, checking every increase and decrease. Make sure the ending balance is not included as an extra change. If the numbers are right but the final bar does not show the full balance from zero, select that point and choose Set as Total.

A subtotal does not line up with the following changes: Confirm that the subtotal equals the running balance at that point. Then select that subtotal’s data point and choose Set as Total. A subtotal that is merely a regular change will be added to the previous running level, which produces an incorrect visual result.

Labels or categories are missing: Check that the selected chart range includes the category column and all intended rows. To include later rows, select the chart and use Chart Design > Select Data to review or extend the chart data range. If labels are clipped, widen the chart or rotate or shorten the category text using the axis formatting options.

Colors or connector lines are hard to see: Select a data point to adjust its fill in the Format Data Point pane. To review connector lines, right-click a column series and choose Format Data Series; look for the Show connector lines option where available. Connector lines help show how floating bars relate, but they do not correct incorrect signs or total settings.

Frequently Asked Questions

Can Excel create a waterfall chart automatically?

Yes. Select a category column and a value column, then use Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. You still need to identify which points are totals, such as the opening and closing balances, and set them as totals.

How do I make a column a total in an Excel waterfall chart?

Click the column once to select the series, click it again to select that individual point, then right-click and choose Set as Total. The point becomes a full column from the baseline. Repeat for each true subtotal or endpoint.

Why does my waterfall chart show a negative value as an increase?

Check the value in the source table and make sure it is actually negative. A positive cost is plotted as an increase, regardless of its category name. Also confirm that the point is not accidentally set as a total.

Can a waterfall chart include subtotals?

Yes. Add a row for each checkpoint or subtotal in the sequence, enter its value, and set that point as a total. Give it a clear label so readers know it is a checkpoint rather than another increase or decrease.

Can I make a waterfall chart in Excel for Mac?

Recent desktop versions of Excel for Mac support waterfall charts. Use the Insert tab’s chart-type menu to choose Waterfall. To set an individual point as a total, select it and use the context menu; Control-click can open that menu on a Mac.

Can I use a waterfall chart in Excel for the web?

Waterfall chart support and formatting controls may differ in Excel for the web. If the chart type or a setting such as Set as Total is missing, open the workbook in desktop Excel to create or finish formatting the chart.

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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