How to Create a Waterfall Chart in Excel: Step-by-Step Guide

To create a waterfall chart in Excel, select your data including categories and values, then go to the Insert tab, click Insert Waterfall or Stock Chart, and choose Waterfall. Excel will automatically build the chart showing increases, decreases, and totals.

Syntax

A waterfall chart in Excel is created using the Insert menu and selecting the Waterfall chart type. The basic syntax is:

• Insert > Charts > Waterfall
• Data must include categories (labels) and values (positive, negative, or totals)
• Excel uses these values to show how each contributes to the final total

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1. Select your data range including labels and values.
2. Go to Insert tab.
3. Click on Insert Waterfall or Stock Chart icon.
4. Choose Waterfall chart.

Example

This example shows how to create a waterfall chart for monthly profit changes:

Data layout:

• Column A: Month (Jan, Feb, Mar, Apr, Total)
• Column B: Profit change (+ or - values)

Steps:

1. Enter data in cells A1:B6.
2. Select A1:B6.
3. Insert > Waterfall Chart.

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Month	Profit Change
Jan	1000
Feb	-300
Mar	500
Apr	-200
Total	1000

Output

A waterfall chart showing Jan starting at 1000, Feb decreasing by 300, Mar increasing by 500, Apr decreasing by 200, and Total at 1000.

Common Pitfalls

Common mistakes when creating waterfall charts include:

• Not including a total or subtotal row to show final values clearly.
• Using data without clear positive or negative values, which confuses Excel's automatic calculation.
• Forgetting to set certain bars as totals manually if Excel does not detect them.

To fix totals, right-click the bar in the chart and select Set as Total.

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Wrong: Using only positive values without totals

Right: Include a total row and mark it as total in the chart

Quick Reference

Step	Action
1	Prepare data with categories and positive/negative values
2	Select data range including headers
3	Go to Insert tab and choose Waterfall chart
4	Adjust bars by setting totals if needed
5	Customize chart colors and labels

Key Takeaways

Select your data with clear positive, negative, and total values before inserting a waterfall chart.

Use Insert > Waterfall Chart in Excel to create the chart automatically.

Manually set bars as totals if Excel does not detect them correctly.

Label your data clearly to help Excel build the chart properly.

Customize colors and labels for better readability.