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
Table of Contents
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