What is waterfall chart and when should it be used?

< 1 min read

A waterfall chart shows how an initial value increases or decreases through sequential components.
It breaks down the impact of positive and negative contributors step by step.
This helps explain how we move from starting value to final result.
In one project, I used a waterfall chart to show revenue from budget to actual.
It highlighted the impact of discounts, returns, and new customers.
It is useful for variance analysis and financial breakdowns.
Waterfall charts clearly show contribution of each factor.
They support storytelling around performance changes.

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