In this article, we\u2019ll show you how to create a waterfall chart in Excel<\/strong>, point to some of Excel\u2019s less obvious snags, and offer practical alternatives to keep you afloat. By the end, you\u2019ll be able to paddle through your financial data with the elegance of a seasoned kayaker, taking your project management prowess to a whole new level. \ud83d\udea3<\/p>\n\n\n Imagine starting a project with a certain budget. Along the journey, you encounter multiple factors affecting your finances\u2014additional resources, unexpected expenses, cost savings\u2014you name it. Every one of these adds to or takes away from your initial budget. \ud83e\uddee<\/p>\n\n\n\n Now, picture a waterfall chart that neatly displays your budget\u2019s ebbs and flows<\/strong>.<\/p>\n\n\n\n A waterfall chart helps you see how an initial value, like your project budget, is influenced by various positive and negative changes. Whether using the methodical Waterfall approach or the flexible Agile cycles<\/a>, a waterfall chart can help you track your project\u2019s shifts.<\/p>\n\n\n\n You get a clear visualization of your starting and end points and the significant steps in between.<\/p>\n\n\n\n The waterfall chart is a series of vertical bars or columns<\/strong>, with the first representing the starting and the last depicting the end value. All the in-between bars mark a change from the starting value.<\/p>\n\n\n\n Those rising up symbolize positive changes, while those with a downward direction indicate a loss of value. The mid-air bars have a \u201cfloating\u201d look<\/strong> as they represent increases or decreases in values that do not start from the baseline.<\/p>\n\n\n\n Earning this type of chart playful monikers like the \u201cflying bricks\u201d or \u201cMario\u201d chart\u2014after the video game. In contrast, totals extend from the baseline to the full height of the value, standing like pillars in a vertical waterfall chart.<\/p>\n\n\n\n When these totals are connected by the mid-air bars and the corresponding connector lines, which visually link the positive and negative values (or increases and decreases), they resemble a bridge structure<\/strong>.<\/p>\n\n\n\n This is why, in finance, this chart is often referred to as a bridge chart. \ud83c\udf09<\/p>\n\n\n Building a waterfall chart in Excel takes patience and precision. ClickUp\u2019s Waterfall Management Template<\/a> simplifies the process by letting you visualize financial flows and project changes with ease. Try it for free today!<\/mark><\/p>\n\n\n\n Waterfall charts have a broad range of applications, making them a versatile tool in every project manager\u2019s toolbox across various fields. \ud83e\uddf0<\/p>\n\n\n\n Here are the main areas where these charts are used:<\/p>\n\n\n\n Despite being a spreadsheet editor first and foremost, Microsoft Excel\u2019s \u201cjack of all trades\u201d nature allows you to create a waterfall chart that\u2019s both simple and effective\u2014all relatively easily. \ud83c\udccf<\/p>\n\n\n\n It\u2019s important to note that the straightforward creation of waterfall charts is only possible with Excel 2016 and later versions. Earlier versions require a more complex, time-consuming process, as they lack the built-in option to directly insert a waterfall chart.<\/p>\n\n\n\n We\u2019ll use a simplified business scenario to show you how to create an <\/strong>Excel waterfall chart<\/strong> in four easy steps<\/strong> and illustrate a project\u2019s financial journey. \ud83d\udcc8<\/p>\n\n\n\n Your waterfall chart\u2019s effectiveness relies on the data you feed into it<\/strong>. Consider the specific analysis you want to perform and choose your data point accordingly. \ud83d\udd0d<\/p>\n\n\n\n Typically, you should start with a well-structured table<\/strong> that catalogs the different categories and values you want to depict. Your data should mirror a progression from one state to another, marked by positive values for increases and negative ones for decreases.<\/p>\n\n\n\n For example, we\u2019ll illustrate a hypothetical project\u2019s financial fluctuations over a single day.<\/p>\n\n\n\n Picture yourself steering a project with a $1,000 daily budget. As the days roll on, life throws its curveballs\u2014some unforeseen circumstances bump costs by $100, while work efficiency or the implementation of automation processes<\/a> saves $400. \ud83d\udcb0<\/p>\n\n\n\n Then, an unexpected equipment failure sets you back an additional $200. By the end of the day, you\u2019ve spent $900 in total, $100 less than what you had to work with.<\/p>\n\n\n\n For this example, you\u2019ll need two columns.<\/strong> In the first column, list everything that has affected your budget, like unexpected costs or savings. In the second column, put the value associated with each element.<\/p>\n\n\n\n For cost additions (like unexpected delays and equipment failure), add a positive value. For cost reductions (like efficient work or automation), input a negative value.<\/p>\n\n\n\n The \u201cTotal actual cost\u201d row<\/strong> represents the final required budget after all the additions and deductions (or positive and negative values). It\u2019s calculated by starting from the initial cost estimate and then adding or subtracting the value of each factor.<\/p>\n\n\n\n The table gives you a structured overview of your budget\u2019s fluctuations. The following steps will convert this data into a visual Excel waterfall chart.<\/p>\n\n\n\n Start by selecting the data for your waterfall chart<\/strong>. Simply click and drag over the cells that contain the data you want to include. Make sure to select both the categories and their corresponding values.<\/p>\n\n\n\n With your data selected, click the \u201cInsert\u201d tab in the Excel toolbar<\/strong>. Here, you\u2019ll find a cluster of chart types to choose from. Look for the \u201cWaterfall\u201d chart button within the \u201cCharts\u201d group. It\u2019s also called the \u201cWaterfall or Stock chart\u201d when hovering over the options.<\/p>\n\n\n\n Clicking this button will insert a default waterfall chart into your Excel spreadsheet, filled with the data you\u2019ve selected.<\/p>\n\n\n\n Tip:<\/strong> If you need to add more data to your chart after creating it, right-click on the chart and choose \u201cSelect Data.\u201d You can then update the data range.<\/p>\n\n\n\n The result might look nothing like your desired waterfall chart<\/strong>, but don\u2019t worry! You\u2019ll customize it in the next step for a more fitting visual representation of your data.<\/p>\n\n\n\n To fine-tune your chart, you\u2019ll first need to identify any subtotal or total values. These values typically start from zero and don\u2019t \u201cfloat\u201d on your chart. <\/strong>They are the sum of all previous increases and decreases at a certain point in the chart, showing the overall result up to that point.<\/p>\n\n\n\n Click on the column in your chart that represents the total or subtotal<\/strong>. It typically comes after a series of individual changes or at the beginning of the chart\u2019s starting value.<\/p>\n\n\n\n Doing so will select all the columns, but we only want to change the total or subtotal column. So, click on it one more time to select only that column. Excel will highlight it, showing it\u2019s ready for customization.<\/p>\n\n\n\n Then, right-click on the column and choose Format Data Point<\/strong> from the pop-up menu. This will open a side panel with different options in the format data series pane.<\/p>\n\n\n\n In the side panel, look for the option \u201cSet as total.\u201d<\/strong> Tick the adjacent box. Doing so will anchor the column to the horizontal axis, making it start from zero. This prevents it from \u201cfloating\u201d midway, ensuring a cleaner and more straightforward chart representation.<\/p>\n\n\n\n Repeat these steps for each total or subtotal in your waterfall chart. This will help viewers understand which values are cumulative totals.<\/p>\n\n\n\n Once your waterfall chart\u2019s in place, it\u2019s time to add some flair and ensure it\u2019s easy to understand. \u2728<\/p>\n\n\n\n Start by clicking on your chart. You\u2019ll see the \u201cChart Tools\u201d<\/strong> pop up in the Excel toolbar. It\u2019s got two tabs, \u201cDesign\u201d and \u201cFormat.\u201d<\/p>\n\n\n\n On the \u201cDesign\u201d tab,<\/strong> you can add a chart title for easy reference (or remove it). Data labels can be included for a better understanding of each value. If your chart covers multiple categories, a legend can help keep them separate and clear.<\/p>\n\n\n\n You\u2019ll find options for adjusting column colors and other visual details on the \u201cFormat\u201d tab<\/strong>. But remember, your main goal is to ensure your data is easy to read, so don\u2019t let style overshadow clarity.<\/p>\n\n\n\n Want your columns to match your company colors? Head to \u201cShape Fill\u201d <\/strong>in the \u201cFormat\u201d tab and choose your desired color.<\/p>\n\n\n\n Tip:<\/strong> Right-click any individual bar (or column, since the bars are usually vertical) to bring up the \u201cFormat Data Series\u201d<\/strong> pane. Uncheck the \u201cShow connector lines\u201d box to hide those lines linking your columns. This quick tweak can make your chart sleeker and less cluttered.<\/p>\n\n\n\n For more tips and tutorials<\/strong> on using Excel to excel at managing your projects, check out these handy guides we\u2019ve put together! \ud83d\ude4c<\/p>\n\n\n\n\u23f0 60-Second Summary<\/strong><\/h2>\n\n\n\n
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What Is a Waterfall Chart?<\/h2>\n\n\n\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2022\/12\/ClickUp-Waterfall-Management-Template.png\")
\n\u2b50 Featured Template<\/mark><\/h2>\n\n\n\n
![\"Visualize](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2024\/09\/image-262.png\")
Uses of Waterfall charts<\/h3>\n\n\n\n
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How To Create a Waterfall Chart in Excel<\/h2>\n\n\n\n
Step 1: Prepare your data<\/h3>\n\n\n\n
![\"Sample](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Prepare-your-data.png\")
\nStep 2: Insert a waterfall chart<\/h3>\n\n\n\n
![\"Locating](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Insert-a-waterfall-chart.png\")
\n![\"Basic](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Basic-Waterfall-Chart-in-Excel.png\")
\nStep 3: Set the totals<\/h3>\n\n\n\n
![\"A](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Set-the-totals.png\")
\n![\""Set](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Format-Data-Point.png\")
\n![\"Waterfall](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Waterfall-Chart-in-Excel-with-Set-Totals.png\")
\nStep 4: Customize your waterfall chart<\/h3>\n\n\n\n
![\"Chart](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Chart-Tools.jpg\")
\n![\"Waterfall](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/Waterfall-Chart-in-Excel-with-Hidden-Connector-Lines.png\")
\nMore useful Excel tips<\/h3>\n\n\n\n
![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/07\/ClickUp-Waterfall-Project-Management-Template.png\")
\n![\"ClickUp](\"https:\/\/clickup.com\/blog\/wp-content\/uploads\/2023\/03\/ClickUp-Gantt-Project-Timeline-Template.png\")
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