In this tutorial, you will learn to create a waterfall chart in Google Sheets.
The waterfall chart explains the reasoning behind the net change in a value between two points. A waterfall chart breaks down and displays each individual element that made up the net change, rather than just showing the initial value in one bar and the ending value in another.
To have a better understanding, we can get started by using real-life scenarios to help you understand how to create a waterfall chart in Google Sheets.
Creating a Waterfall Chart
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Before we begin we will need a group of data to be used to create the waterfall chart.
Step 1
Make sure your group of data is displayed in a clean and tidy manner. This will help us to create the waterfall chart easily.

Step 2
Select the entire data cell, choose Insert, and select Chart.

Step 3
By default, Google Sheets will use the selected data group to generate a pie chart. Simply select the waterfall chart in the chart editor.

Step 4
Now, you can customize the waterfall chart to your preference. We will change the chart title to ‘Inventory Movement’ for a better representation of the area chart. Also, to emphasize the chart title, we will also change the text color to black, bold it, and align it to the center.

Step 5
After customizing your chart, you will see something like this.

Summary
That’s all there is to it. You are welcome to copy the example spreadsheet below to see how it is done. The most crucial lesson is to enjoy yourself while doing it.
Example Spreadsheet: Make a copy of the example spreadsheet
In this tutorial, I covered how to make a waterfall chart in google sheets. Want more? Check out all the Google Sheets Tutorials.