How to Create a Stacked Waterfall Chart in Excel?

Are you looking for a way to visualize different data points in Excel? A Stacked Waterfall Chart in Excel is just what you need. It allows you to visualize data comprehensively and intuitively.

In this blog, you will learn:

Table of Content:

1. Overview
2. Video Tutorial:
3. Why Use an Excel Stacked Waterfall Chart?
4. When to Use a Stacked Waterfall Graph in Excel?
5. Key Components
6. Real-Life Example
7. Add-ins For Creating Stacked Waterfall Charts
8. How to Create a Stacked Waterfall Chart in Excel?
   • Step 1: Data Preparation
   • Step 2: Install Add-ins
   • Step 3: Create an Excel Stacked Waterfall Chart
   • Step 4: Final Stacked Waterfall in Excel 
9. Common Issues and Troubleshooting
10. Tip For Excel Stacked Waterfall Chart With Positive and Negative Values
11. FAQs
12. Wrap Up

Overview

A stacked Waterfall Chart shows changes in values over time or between multiple data sets. It can show the cumulative effect of a data series or compare multiple data series.

A Stacked Waterfall uses a combination of stacked bars and columns to show the data points. The bars and columns are placed side by side to build the chart.

The chart also includes a total bar, which shows the sum of all the data points in a category or series. Also known as a Waterfall Chart, it displays the bridge that connects the starting point to the endpoint.

It’s a great way to illustrate the contributions of different values to a total sum. Data analysis gets easier by displaying the individual items as bars and the total sum as a total bar.

Video Tutorial:

Why Use an Excel Stacked Waterfall Chart?

A stacked waterfall graph is a powerful tool for visualizing how multiple components contribute to changes in a value. Here are four key reasons to use it:

• Shows Detailed Contribution Breakdown: It displays how each sub-category (like product lines or departments) adds to the total change, helping you understand the makeup of increases or decreases.
• Highlights Positive and Negative Impacts: You can easily spot what’s driving gains and losses at each stage, which is helpful for decision-making and identifying improvement areas.
• Ideal for Multi-Dimensional Analysis: It allows you to compare more than one data series at a time, making it perfect for analyzing categories within time periods, regions, or teams.
• Makes Complex Data Easy to Understand: By stacking elements visually, it simplifies large datasets and turns them into a clear, step-by-step story your audience can follow.

When to Use a Stacked Waterfall Graph in Excel?

• When visualizing changes in values over time or between multiple data sets.
• It is ideal for data sets with multiple series. You can use it to show the cumulative effect or compare multiple data series.
• Comparing performance across different categories or periods.
• To analyze financial performance or to compare sales of different products or services.
• To compare the performance of different departments or divisions within a company.
• It’s a great way to compare the contributions of different values to a total sum. Thus, a great data visualization tool to use when analyzing data that you can break down into several parts.
• When you need to explain a large amount of data to your audience.

Key Components of an Excel Stacked Waterfall Chart

1. Categories (X-Axis Labels)

These represent the stages or time periods across which the values change (e.g., months, departments, product lines).

2. Stacked Bars (Data Columns)

Each bar is broken into segments (stacks) that represent different sub-categories. Together, they show the total value at each step, along with individual contributions.

3. Connectors (Floating Steps)

These lines or spaces visually connect each bar to show the flow from one stage to the next. They help track the cumulative effect.

4. Color Coding

Different colors are used to distinguish between positive, negative, and subtotal components, and between the different sub-categories in each stack.

5. Totals and Subtotals

Some bars are used to highlight final totals or key checkpoints. These are often formatted differently (e.g., solid color) to stand out.

Stacked Waterfall Graph Example

This Stacked Waterfall offers a clear breakdown of how a company’s profit is derived from its revenue after accounting for costs.

• Revenue is the starting point at $1,200 (shown in blue).
• From that, the Cost of Sales is deducted, totaling –$600 (in red).
• Then, Operating Expenses of –$400 (in orange) are subtracted.
• This leaves a final Profit of $200, visualized again in blue.

The stacked nature of the chart helps illustrate the cumulative effect of each cost element on the overall profitability. It’s an effective way to highlight how different components contribute to financial results, making it a powerful tool for business analysis in Excel.

Add-ins For Creating Stacked Waterfall Charts

First, you will need to organize your data into columns and rows. Each row should have a different series of data. Once you organize the data, you can create the chart. Upon creating the chart, you can customize it by adding labels, changing the colors and font sizes, or adding a legend.

How to Install ChartExpo on Excel?

1. Open your Excel application.
2. Open the worksheet and click on the “Insert” menu.
3. You’ll see the “My Apps”.
4. In the Office Add-ins window, click on “Store” and search for ChartExpo on the My Apps Store.
5. Click on the “Add” button to install ChartExpo in your Excel.

ChartExpo charts are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and make creative data visualizations in a few clicks in your favorite tool.

Step 1: Data Preparation

Here is the cash flow data for a certain business. Let’s create a Chart of this data:

Stacks	Bridges	Amount
Sales	Mobiles	20025
Sales	Tablets	9746
Sales	PCs	7095
Services	Mobiles	3959
Services	Tablets	6650
Services	PCs	9077
Total Revenue	Mobiles	23984
Total Revenue	Tablets	16396
Total Revenue	PCs	16172
Marketing	Mobiles	-4630
Marketing	Tablets	-2360
Marketing	PCs	-2650
Transportation Cost	Mobiles	-2150
Transportation Cost	Tablets	-935
Transportation Cost	PCs	-965
Salaries	Mobiles	-3360
Salaries	Tablets	-2340
Salaries	PCs	-1130
Wages	Mobiles	-3510
Wages	Tablets	-2390
Wages	PCs	-930
Operating Cost	Mobiles	-640
Operating Cost	Tablets	-3700
Operating Cost	PCs	-1240
Taxes	Mobiles	-4180
Taxes	Tablets	-1800
Taxes	PCs	-5460
Net Income	Mobiles	5514
Net Income	Tablets	2871
Net Income	PCs	3797

Step 2: Install Add-ins

• To get started with ChartExpo, install ChartExpo in Excel.
• Now Click on My Apps from the INSERT menu.

• Choose ChartExpo from My Apps, then click Insert.

• Once ChartExpo is loaded, you will see a list of charts available.

• Then, scroll through the numerous charts until you see your required chart.

Step 3: Create an Excel Stacked Waterfall Graph

• After highlighting data from the sheet, click on the option “Create Chart From Selection“.

Step 4: Final Stacked Waterfall in Excel

• The result will be an image that looks like the one below.

Insights

• The total revenue of $56.6k is derived from sales of $36.87k and services of $19.69k.
• Mobile sales are the major contributor at $20.03k.
• PCs accounted for the majority of services at $9.08k.
• Most of the revenue was consumed by Taxes and Marketing, which amounted to $11.44k and $9.64k, respectively.
• Transportation was the least spent at $4.05k.
• Ultimately, your net income was $12.18k.

Common Issues and Troubleshooting

1. Incorrect Totals Displayed

Issue: The chart’s final totals don’t reflect the actual sum of values.
Fix: Double-check your data inputs and formulas. Ensure that subtotals are not mistakenly included in the calculations, and all components are added or subtracted correctly.

2. Colors Not Displaying Properly

Issue: Positive and negative values use the same color, making it hard to interpret.
Fix: Manually assign colors to each series. Use a consistent color scheme (e.g., green for increases, red for decreases) to improve readability and impact.

3. Bars Not Stacking as Expected

Issue: The chart shows clustered or overlapping bars instead of stacked ones.
Fix: Ensure your data layout follows Excel’s stacked chart format, with sub-categories in separate columns and proper headers. Use a stacked column chart type when inserting.

4. Connector Lines or Steps Look Off

Issue: The flow between stages is visually misaligned or confusing.
Fix: Sort your data in logical order and avoid blank cells or hidden rows. Also, review how Excel interprets “bridge” or “intermediate” values between categories.

5. Data Labels Missing or Misplaced

Issue: Viewers can’t tell what each bar or segment represents.
Fix: Turn on data labels and format them to show exact values. Position them clearly above or inside each bar for easy viewing.

Tip For Excel Stacked Waterfall Chart With Positive and Negative Values

• Use Consistent and Intuitive Color Coding

Color plays a major role in helping your audience interpret the chart quickly. Use one color to represent positive values (such as green) and another for negative values (like red). Reserve a neutral or darker color for totals or final values to make them stand out. This visual distinction helps readers instantly understand what’s driving the increase or decrease.

• Group and Stack Data Logically

Organize related sub-categories within each bar to maintain clarity. For example, group similar expenses or revenue types together. This makes it easier for viewers to see how each segment contributes to the overall change and understand the structure behind the data.

• Label Clearly and Accurately

Data labels are essential when working with both positive and negative values. Add labels to each segment and use axis titles and a clear legend. This ensures your audience doesn’t have to guess what each bar or color represents, especially when values are close in size or cross the zero line.

• Highlight Key Milestones or Totals

To draw attention to major changes or summary points, emphasize the starting value, key checkpoints, and the final total. Use bold colors, thicker borders, or distinct fill styles to differentiate these values from regular data points. This helps your audience focus on what matters most in your analysis.

• Keep the Layout Clean

Avoid overcrowding your chart with too many stacked components in each bar. A clean layout with enough white space allows viewers to absorb the information more easily. Limit the number of categories shown at once and use filters or multiple charts if necessary to avoid visual clutter.

FAQs

What types of data can you visualize with a Stacked Waterfall Chart in Excel?

It is commonly used to visualize and analyze financial data, such as profit, revenue, expenses, and cash flow. Stacked Waterfall Graphs are also useful for visualizing and analyzing datasets with multiple categories. For example, expenditures by department or revenue by product category.

What advantages does a Stacked Waterfall Chart have over other chart types?

It makes it easier to track and analyze trends over time. You can also use it to compare multiple data series. This makes it a great tool for comparing different categories. Furthermore, the chart is highly customizable.

How to use the Stacked Waterfall Template in Excel?

To use the stacked waterfall chart Excel template, first open the template and enter your data into the predefined categories and subcategories. The template automatically builds the stacked waterfall based on your inputs.

Customize colors and labels as needed to highlight positive and negative values. Using the stacked waterfall Excel template makes it easy to visualize complex data and track how different components contribute to overall changes.

Wrap Up

Now, you have learned how to create this Chart in Excel. It’s a great way to compare the contributions of different values to a total sum.

ChartExpo is a great resource for creating a Stacked Waterfall Chart in Excel. It offers a variety of charts and diagrams to choose from and provides step-by-step instructions for creating the chart.

These charts help you to visualize the cumulative effect of positive and negative values. Creating a Chart is a great way to visualize data intuitively.

In addition, it’s also a great way to identify areas of improvement quickly. For efficiency, ensure the data is in columns and rows, and the chart is easy to interpret.