Question 1

What is a waterfall chart?

Accepted Answer

A waterfall chart, also called a bridge chart, shows how a starting value becomes an ending value through a series of increases and decreases. Each change is drawn as a floating bar that begins where the previous one ended, so you can see at a glance which items added the most and which took the most away.

Question 2

When should I use a waterfall chart?

Accepted Answer

Use a waterfall chart to explain the movement between two totals: a profit and loss statement from revenue to net income, cash flow from opening to closing balance, budget versus actual variances, inventory or headcount changes, or the drivers behind a year-over-year change in sales.

Question 3

How do I enter increases and decreases?

Accepted Answer

Enter a starting label and value, then one change per line as a label, a colon and an amount. Positive amounts such as 'Product sales: 30,000' are increases and negative amounts such as 'Returns: -4,000' are decreases. Thousands separators and a $ sign are accepted, and increases and decreases each get their own color.

Question 4

What do the start and total bars show?

Accepted Answer

The start bar and the optional ending total bar rise from zero to show actual balances, while the bars in between float to show only the change. Tick 'Add an ending total bar' to finish the chart with the final result, and rename it to match your data — for example 'Net income' or 'Closing balance'.

Question 5

Can the running total go below zero?

Accepted Answer

Yes. A bar that crosses zero is drawn across the zero line, and the step-by-step table under the chart lists the change and the running total after every step, so you can follow a balance that turns negative and recovers. Hover over any bar to see its change and running total.

Step	Change	Running Total
Starting balance	—	$50,000
Product sales	+$30,000	$80,000
Returns	−$4,000	$76,000
Cost of goods	−$12,000	$64,000
Marketing	−$6,000	$58,000
Other income	+$2,500	$60,500
Ending balance	—	$60,500

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