How to Create a Waterfall Chart in Excel

smartsheet.com /how-create-waterfall-chart-excel

3/4/2016

No matter what industry you work in, at some point you will need to analyze a value over time like yearly sales, total
profit, or inventory balance. When doing so, it is helpful to see where you started and how you arrived at the final
value. A waterfall chart is an ideal way to visualize a starting value, the positive and negative changes made to that
value, and the resulting end value.

Using a template is the easiest way to create a waterfall chart. In this article, youll find the best Excel waterfall chart
template and well show you how to customize the template to fit your needs. Plus, well give you step-by-step
instructions to create a waterfall chart in Excel, from scratch.

Youll also learn how to create a waterfall chart using Smartsheet, a spreadsheet-inspired work management tool
that provides real-time visualization that dynamically updates as values are changed.

What Is a Waterfall Chart?

A waterfall chart, also known as waterfall graph, bridge graph, bridge chart or cascade chart, is a great way to
provide a quick visual into positive and negative changes to a value over a period of time.

Within a waterfall chart the initial and final values are shown as columns with the individual negative and positive
adjustments depicted as floating steps. Some waterfall charts connect the lines between the columns to make the
chart look like a bridge, while others leave the columns floating.

When to Use a Waterfall Chart?

Waterfall charts are helpful for a variety of scenarios, from visualizing financial statements to navigating large
amounts of census data. Here are some examples of situations where you might want to use a waterfall chart:

Evaluating company profit

Comparing product earnings
Highlighting budget changes on a project
Analyzing inventory or sales over a period of time
Showing product value over a period of time
Visualizing profit and loss statements
Creating executive dashboards

Download Our Free Excel Waterfall Chart Template

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The easiest way to make a waterfall chart in Excel is to use a pre-made template. A Microsoft Excel template is
especially useful if you dont have a lot of experience making waterfall charts. All you need to do is to enter your data
into the table and the Excel waterfall chart will automatically reflect the changes.

Download Waterfall chart in Excel Template (2010-2013)

Download Waterfall chart in Excel Template (1997-2003)

When adding your own data to the template, the waterfall chart will automatically update but you may need to add or
delete rows in your table depending on how much data you need to input. When adding or deleting rows, it
could throw off your column formulas and totals. The solution is to copy the column formulas down to adjacent cells
using the fill handle.

If youre unsure how to fix the formulas as you add new rows, see Step 2: Insert formulas to complete your table,
included below.

After updating your waterfall chart to fit your needs, you can simply copy and paste it into a PowerPoint presentation,
dashboard, or report as an image.

Features of a Waterfall Chart in Excel

Each waterfall chart will have a slightly different appearance, depending on the type of data being visualized.
However, your final chart will likely include the following features:

Floating columns: To quickly provide a visual into the status of a value over time, the floating columns (also
known as plot or plotted values) represent the positive and negative changes made to the initial value.
Spacers: Because each of the columns in a waterfall chart dont begin at zero, they need to be offset by a
certain margin. This space is known as the spacer or padding.
Connector lines: The connector lines (also known as datum) are used to show the relationships between the
floating columns. Although they are not necessary for all waterfall charts, the connector lines can be a helpful
addition to improve the professional look of your chart.
Color coding: By assigning specific colors to the different column types, you can quickly tell positive from
negative values, and provide a quick visual of the movement over time.
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 Crossover: There are some instances, depending on the values you're plotting in your chart, where the
values will move across the x-axis. For example, if you are creating a waterfall chart as a visual for a profit
and loss statement and the first figure is 1000 while the second figure is -2000, part of the floating column will
be above the x-axis and part will be below. This is an important feature of the waterfall chart, as the chart
should adjust automatically to show movement across the axis.

If you want to build a waterfall chart of your own, weve got the step-by-step instructions for you. Although Excel
2016 includes a waterfall chart type within the chart options, if youre working with any version older than that, you
will need to construct the waterfall chart from scratch.

Step 1: Create a data table

Lets start with a simple table like annual sales numbers for the current year. You will see in the table below that the
sales amounts vary for each month. Some months will have positive sales growth, while others will be negative.

1. Insert three additional columns to your Excel table to represent the movement of
the columns on the waterfall chart. The base column will represent the starting
point for the fall and rise of the chart. You will input all the negative numbers from
the sales flow in the fall column and all the positive numbers in the rise column.

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*You will also want to add a Start and End row to your table to provide total values for the beginning and end of your
sales year.

Step 2: Insert formulas to complete your table

The easiest way to complete your table is by adding formulas to the first cells in each of the corresponding columns
and then copy them down to the adjacent cells using the fill handle.

1. Select C4 in the Fall column and enter the following formula: =IF(E4<=0, -E4, 0)

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*Drag the fill handle down to the end of the column to copy the formula.

2. Select D4 in the Rise column and enter the following formula: =IF(E4>0, E4,0)

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*Copy the formula down to the end of the table using the fill handle.

3. Select B5 in the Base column and enter the following formula: =B4+D4-C5

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*Use the fill handle to drag and copy the formula to the end of the column.

Step 3: Build a stacked column chart

Now you have all the necessary data to build your waterfall chart.

1. Select the data you would like to highlight in your chart. Include the row and column headers, and exclude the
sales flow column.

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 2. Go to the Insert tab, click on the Column Charts group, and select Stacked Chart.

*Your stacked chart now appears in the worksheet, with all your data included, but it is not a waterfall chart just yet.
Next we will turn the stacked column chart into a waterfall chart.

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Step 4: Convert your stacked chart to a waterfall chart
In order to make your stacked column chart look like a waterfall chart, you will need to make the Base series
invisible on the chart.

1. Click on the Base series to select them. Right-click and choose Format Data Series from the list.

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2. Once the Format Data Series pane appears to the right of your worksheet, Click on the Fill & Line icon (looks
like a paint bucket).
3. Select No fill in the Fill section and No line in the Border section.

4. Now that the Base series is invisible, you should remove the Base label listed
in the legend. To do this, double click on Base in the legend, right-click on the
selected label, and click Delete from the dropdown list.

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Step 5: Format your waterfall chart
To make your waterfall chart more engaging, lets apply some formatting.

1. Lets start by color-coding the columns to help identify positive versus negative values. Select the Fall series
in the chart, right-click and select Format Data Series from the list.
2. Once the Format Data Series pane appears to the right of your worksheet, select the Fill & Line icon.
3. Click on the color dropdown to select a color.

4. Once youve picked the color for the Fall series, complete the
same steps for the Rise series.

*You should also color-code the start and end columns to make
them stand out, and will need to do those separately.

If you want to make your waterfall chart look a little nicer, remove most of the white space between the columns.

1. Double-click on one of the columns in your chart.

2. Once the Format Data Series pane opens up, change the Series Overlap to 100% and the Gap Width to
15%.

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Youre almost finished. You just need to change the chart title and add data labels.

1. Click the title, highlight the current content, and type in the desired title.
2. To add labels, click on one of the columns, right-click, and select Add Data Labels from the list. Repeat this
process for the other series.
3. To format the labels, select one of the labels, right-click, and select Format Data Labels from the list.
4. Once the Format Data Labels pane opens, you can adjust the label position, text color and font to make the
numbers more readable.

*Once youre done labeling the columns, you can delete unnecessary elements like zero values and the legend.

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How to Add Subtotal or Total Columns
After completing your initial waterfall chart, you may decide to add a subtotal column to visualize status at a midway
point. For example, in our sales flow example, it would be helpful to include a column showing mid-year sales.

1. In your table, insert a row above July.

2. Name the row Subtotal, and insert a formula to calculate total Rise for months Jan through Jun, minus total
Fall for the same months.

3. Next, you need to fill in the new subtotal column. Select the individual subtotal column in the waterfall chart.
Right-click the column, select the Fill icon, and choose the color you would the column to be filled with.

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A More Collaborative Waterfall Chart

Now that youve seen what it takes to construct a waterfall chart in Excel, I think we can agree that there is a lot to
remember.

While a waterfall chart in Excel provides a way to visualize the change in value over a period of time, it doesnt
provide real-time visualization that dynamically updates as values are changed.

Luckily we have another, more collaborative way to create a waterfall chart using Smartsheet and the Microsoft
Power BI integration.

How to Create a Waterfall Chart in Smartsheet

Smartsheet is a spreadsheet-inspired work management tool with robust collaboration and communication features.
Smartsheet has a similar look and feel as Excel, so it's easy to start using right away yet its cloud-based so you can
access your data and information anywhere, anytime.

Lets create a waterfall chart in Smartsheet.

Step 1: Create a simple table in Smartsheet

1. To get started with Smartsheet, log in to your account and navigate to the Home tab.
2. Click Create New, choose Blank Sheet, and name your new sheet Sales Flow 2015.

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 3. Next, create the simple sales flow table that we used
for the Excel example above. Do not include the
base, fall, or rise columns.
4. Select cell [Sales Flow]16, enter the following
formula: =SUM([Sales Flow]3:[Sales Flow]15), and
hit enter.

Your simple table is complete.

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Step 2: Import Smartsheet data into Microsoft Power BI
The integration between Smartsheet and the Microsoft Power BI enables you to
visualize your Smartsheet data and create beautiful and insightful charts,
reports, and dashboards. To get the Microsoft Power BI, go to the Power BI
website and download the free desktop connector beta. Once youve
downloaded the connector, you can import your Smartsheet data.

1. Open the Power BI Desktop, click on Get Data in the navigation ribbon at the
top, and select More from the dropdown list.
2. Type Smartsheet in the search field in the upper left-hand corner. Once
Smartsheet appears in the list, select it and click the yellow Connect button.
You will be prompted to sign in to Smartsheet.
3. Once you have connected your Smartsheet account to the Power BI, a
Navigator window will appear that includes the logical hierarchy of your
Smartsheet workspaces, folders and sheets.

4. Scroll down to locate the Sales Flow 2015 sheet

that you created. Select the Sales Flow 2015
sheet, and click the Edit button in the bottom
right-hand corner of the Navigator.
5. Delete any empty columns by right-clicking the
column and selecting Remove. To delete empty
rows, click the Remove Rows button in the top
navigation and input the number of rows you
would like to remove.
6. Once youre done editing the data, click the Close
& Apply button in the upper left-hand corner.

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Now that you have your Smartsheet data linked to the Power BI, its time to create your waterfall chart.

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Step 3: Generate the waterfall chart
1. Select the Report icon in the left-hand column of
the Power BI.

2. Choose the Waterfall Chart icon within the

Visualizations section in the right-hand panel.

3. Next, locate your data in the Fields panel, and

drag and drop the data to the appropriate fields.
For the waterfall chart, you have a Category field
and a Y-axis field. Drag the Months data to the
Category field, and the Sales Flow data to the Y-
axis field.

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Youre almost done. As you notice, this chart doesnt look like the waterfall chart we created in Excel. The default
setting is to count the Y-axis data, but you actually want it to Sum the monthly data.
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 4. To change from count to sum, click on the down arrow in the Count of Sales Flow section and select Sum
from the dropdown list.

You can format your chart by simply selecting the Format icon in the Visualizations column, to add labels, change
the title, and color-code your columns.

Now youve created a waterfall chart that will provide a dynamic, real-time
visualization of your data, using Smartsheet and the Microsoft Power BI.

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Choosing a Waterfall Chart Template

From analyzing sales flow to visualizing income statements, a waterfall chart template can help you organize the
data and bring all the details into view in a beautiful, visual presentation.

When picking a template, choose one that has the functionality you need. Templates are just a starting point, and
you can customize them as much or as little as you want. Smartsheet offers a 30-day free trial and Microsoft Power
BI is free to download, so you can see first-hand if either is right for you. A template is supposed to make things
easier, so if it requires too much customization, move on to the next option.

Try Smartsheet for Free

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