Waterfall Chart

A waterfall chart explains how additions and subtractions change a starting value into an ending value. Intermediate bars float at the running balance. Start and end bars usually extend from zero.

Change in active accountsSample data

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Check that the steps reconcile

The example starts with 100 active accounts. Adding 30 new accounts gives 130. Closing 20 accounts leaves 110. The final bar must equal the starting value plus all changes.

The closed-account bar spans 110 to 130. Its height represents the magnitude of the decrease: 20. The minus sign in its label explains the direction without relying on color.

Use changes, not repeated totals

Each intermediate bar should represent a change. If you put monthly totals into those positions, the chart will add them as if they were new contributions.

Use one unit and one defined scope. For example, an account-balance explanation must account for all relevant additions and removals during the period.

Keep the sequence clear

Follow time order or the order of the calculation. Mark subtotal bars so readers do not mistake them for another change. Label positive and negative values directly.

For a trend in totals alone, use a line chart. For flows that split and merge, use a Sankey diagram. A waterfall is most useful when the question is “What explains the difference between these two totals?”