Waterfall Chart in Excel: Sample Data and Steps

To make a waterfall chart in Excel for Microsoft 365 on Windows, enter categories in one column and the starting total, increases, decreases, and ending total in the next; select the data, then choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall. Here is a ready-to-copy sample: starting cash of 100, increases of 40 and 15, a decrease of 25, and ending cash of 130.

Stage	Amount
Starting cash	100
Sales received	40
Operating costs	-25
Investment received	15
Ending cash	130

The intermediate amounts are changes, not running balances: positive values raise the total and negative values lower it. In the chart, mark Starting cash and Ending cash as totals so they appear as full columns from the baseline.

What a waterfall chart shows

A waterfall chart explains how a beginning value changes through a sequence of additions and deductions to arrive at an ending value. It is also called a bridge chart because the intermediate bars visually connect the first total to the final one. Unlike a standard column chart, the change bars generally float at the level reached after the preceding changes.

This makes the chart useful when the path between two totals matters as much as the totals themselves. For example, a team might show how revenue changed because of new customers, lost customers, price changes, and refunds. A project report could show how an initial estimate moved after scope additions and savings. The chart communicates the contribution and direction of each step without requiring a reader to calculate each running balance mentally.

Waterfall charts are less useful when every value is an independent category rather than a change in a sequence. In that case, an ordinary column chart is usually easier to read. The defining question is whether each intermediate value adds to or subtracts from the running total.

Sample data and the running-total check

The sample uses 100 as the opening amount. Sales add 40, costs subtract 25, and an investment adds 15. The changes total 30, so the closing amount is 130. If you place the amounts in B2:B6 in the same order as the table, the check formula is =B2+SUM(B3:B5). It returns 130: 100 + 40 – 25 + 15.

This calculation is a useful data check, but it does not tell Excel that the final row is a total. The chart treats the rows as plotted data points until you designate the total points in the chart. Keep the ending value in the data if you want a visible closing column; do not replace it with a blank simply because the intermediate changes already add up to it.

For clarity, use labels that describe each event and keep the order meaningful. A bridge from opening to closing cash should usually follow the period’s events in chronological or logical order. If the chart represents revenue changes, name each driver rather than using vague labels such as Change 1 and Change 2.

Create the chart in Excel for Microsoft 365

Enter the category names in A1:A6 and the corresponding values in B1:B6, including headings such as Stage and Amount.
Select both columns, including the headings. Avoid selecting unrelated notes or blank columns that could confuse the chart’s data range.
On the Windows ribbon, choose Insert > Insert Waterfall, Funnel, Stock, Surface or Radar Chart > Waterfall.
Check the chart’s categories and bars. If Excel has not treated the opening or closing amount as a total, right-click that data point and choose Set as Total.
Use Chart Design to adjust the chart style, colors, or data selection, and use the chart title and labels to explain what the bridge measures.

In Excel for Mac, select the same two-column range and use the Insert tab’s Waterfall chart option; ribbon placement can differ with the window size and ribbon layout. To open a chart point’s context menu on a Mac, Control-click it. If an option is not visible, confirm that the chart point itself—not the whole chart area—has been selected.

Set starting values, ending values, and subtotals

A total point is different from a change point. A change bar floats between the previous running balance and the new balance. A total bar starts at the chart baseline and reaches the value represented by that category. In the example, Starting cash is 100 and Ending cash is 130, so both should be total bars. Sales received, Operating costs, and Investment received remain changes.

To set one, select the individual bar, right-click it, and choose Set as Total. If the whole series is selected, click the specific bar again before opening the context menu. Excel may use different colors for increases, decreases, and totals; those colors identify the bar type, but the chart legend or a short note should make the meaning clear to readers.

The same approach works for an intermediate subtotal. Suppose a report shows quarterly changes and wants to display a full-year total before a second phase of changes. Mark the subtotal row as a total, then continue with the later changes. Treating a subtotal as an ordinary change would add its entire value again and distort the visual bridge. Check each marked total against the underlying calculation.

Format the chart for easy reading

Good formatting helps readers distinguish a change from a final result. Use a clear chart title, descriptive category labels, and a value axis with units. If amounts are in thousands, state that in the title or axis label rather than letting readers guess. Keep positive and negative colors distinct and reserve a third color for totals when possible.

Order the categories to match the story being told, and avoid rotating long labels so far that they become hard to scan.
Use data labels when exact values matter, but remove labels that overlap or repeat information already obvious from the axis.
Keep the value axis scale appropriate. A truncated axis can exaggerate small differences in bar heights and make the bridge seem more dramatic than it is.
Use a concise title such as Cash movement, January to March rather than a generic title such as Chart Title.
Check the chart at its expected display size. Labels that fit on a wide desktop worksheet may wrap or overlap in a report or slide.

To add or edit a title, select the chart and use the chart elements controls or Chart Design options, depending on the ribbon layout. Selecting the chart and choosing Chart Design > Add Chart Element provides access to common elements such as chart titles and data labels. Menu details can vary slightly by Excel build, but the chart-specific controls appear after the chart is selected.

Common problems and how to fix them

If all bars appear to start from the baseline, check whether the chart is actually a waterfall chart and whether the intermediate values are entered as changes. Then inspect the opening, closing, and subtotal points: use Set as Total for each value intended to be a standalone total. A frequent mistake is to enter running balances in every row and expect Excel to treat them as changes. That can create a misleading chart because each row is then interpreted as another contribution.

If the ending amount does not match the bridge, calculate the opening value plus all intermediate changes and compare it with the intended closing value. In the example, 100 + 40 – 25 + 15 equals 130. A positive cost entered as 25 instead of -25 would produce 180, so verify the signs as well as the arithmetic. Also check that the chart’s selected range includes the correct rows and that no heading or unrelated total has been included as a change.

If category names appear as a single label or Excel plots the wrong orientation, use Chart Design > Switch Row/Column or Chart Design > Select Data to inspect the range and series. For a simple two-column sample, Excel should use the first column for category names and the second for amounts. If bars appear in an unexpected order, rearrange the source rows; waterfall sequences depend on order, so alphabetically sorting the categories can change the story.

If negative values are hard to see, confirm that they are numeric negatives rather than text containing a dash or a pasted symbol. A cell formatted as text may not behave like a numeric amount. Re-enter the value as a number, then check the chart again. For reports that change frequently, keep the source data in a tidy range and update the chart when new rows are added; do not assume that every chart automatically includes data entered below its original range.

When to choose another chart

Choose a waterfall chart when the point is to show how a sequence of contributions explains a net change. Choose a standard column or bar chart when categories are independent and the reader should compare their sizes directly. Choose a line chart when the main message is a trend over regularly spaced time periods. A stacked column chart can show how parts make up a whole across several groups, but it does not explain a bridge of positive and negative changes as directly.

A table may be better than a chart when there are many small adjustments, the exact running balance at every step is essential, or category names are too long to fit. A useful report can include both: the waterfall chart for the overall story and a table for precise values, definitions, or supporting detail. Avoid adding every minor transaction as a bar if doing so makes the main drivers difficult to identify; group small items into a clearly named category when that grouping is appropriate.

Frequently Asked Questions

Can I paste this sample data directly into Excel?

Yes. Enter the five stage names in one column and the five amounts in the next, then add a heading row if desired. Use -25 for Operating costs. Select both columns and insert a Waterfall chart, then mark Starting cash and Ending cash as totals if Excel has not already done so.

Why does my waterfall chart show the wrong ending value?

Check the arithmetic, the signs of increases and decreases, the selected data range, and whether the closing point is marked as a total. The sample should end at 130 because 100 + 40 – 25 + 15 = 130. If your numbers differ, use your own opening value and changes in that same calculation.

How do I show a subtotal in an Excel waterfall chart?

Select the subtotal’s individual bar, open its context menu, and choose Set as Total. The subtotal will be drawn from the baseline instead of treated as another change. Subsequent changes can then continue from that subtotal in the bridge.

Can a waterfall chart include negative values?

Yes. Enter deductions as negative numbers, such as -25 for a cost of 25. Excel displays the change as a downward step. Confirm that the cell contains a numeric negative value, not text, if the bar does not behave as expected.

Is an Excel waterfall chart available on Mac?

Excel for Microsoft 365 for Mac includes waterfall chart support. Select the data and look for Waterfall on the Insert tab; ribbon placement can vary by layout. Control-click a chart point to open its context menu on Mac, while Windows users can right-click it.

The sample is an illustrative charting example, not financial or accounting advice. For a real report, verify the source figures, definitions, and required presentation with the responsible finance professional.

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.