Part of a whole
Variance waterfall chart
Breaks the difference between two totals into additive component variances.
- Chart
- Contribution
- Deviation
What it answers
Which components explain a difference between two totals?
- Shape
- Bridge between reference totals
- What it shows
- Additive drivers of a gap.
Example
The question
Why did profit come in below budget?
From budget profit to actual profit, 2025 (EUR million)
Illustrative data. It belongs to no company.
When to use it
Use it when
Budget/actual or prior/current reconciliation.
Avoid it when
When overlapping effects double-count the same change.
How to read it
Read baseline total, component variances and final total.
Note
Components must reconcile the opening and closing totals.
The data you need
- Layout
- Long table
- Fields
- Order: integer; Label: text; Amount: signed number; Type: Start/Change/Total
- One row is
- One ordered opening amount, additive change or total. What is the grain?
- Rules
- Keep order explicit. Treat total rows as totals, not changes. Opening plus changes must equal closing.
- Optional
- Optional subtotal rows and positive/negative colours.
- Preparation
- Validate the input grain and missing values. Keep order explicit. Treat total rows as totals, not changes. Opening plus changes must equal closing.
- Units
- Use the measured variable's stated unit consistently. No denominator is implied unless the value is a rate or proportion.
Worked example
Budget 100, price+10, volume+8, cost-3 gives actual 115. Components explain the full 15 difference.
| Order | Label | Amount | Type |
|---|---|---|---|
| 1 | Opening | 100 | Start |
| 2 | Increase | 25 | Change |
| 3 | Decrease | -10 | Change |
| 4 | Closing | 115 | Total |