How To Create a Dynamic Waterfall Chart in Excel

Waterfall charts are used to explain the +ve and -ve components of a change in value between two points.

It reveals the contribution per factor affecting the item being analyzed. For example, If you had Budgeted $ 66M but ended up spending $ 72M, you can easily tell which cost item contributed the most to the increase.

This article will show you how to reveal complexity in items movement

Waterfall chart

How to create Waterfall Chart Using Excel 2013 and Below

Step 1: Separate the +ve and the -ve

Using a Simple IF function, calculate the budget overspending (increase) and underspending (decrease).

Step 2: Show the Budget Movement

Step 3: Create a Stacked Bar Graph

Step 4 Edit the Stacked Column Chart

How to create Waterfall Chart Using Excel 2016 and Above

Step 1: Calculate the overbudget and the underbudget values

Step 2: Edit the Waterfall Graph

Follow the steps as shown in the video below

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