Why do we use a Waterfall chart in Tableau?

A waterfall chart shows the gradual transition of data values from start to end.

It represents a running total with successive increase and decrease happening in between the start point and end point.

In a normal running total, we cannot see how individual categories are contributing to the whole or total.

Using a waterfall chart, we analyse how each category’s positive values increase the total value and the negative values decrease the total value.

Such ups and downs lead to a resultant final value. And this is what we analyse in a waterfall chart. This allows for an insightful analysis in Tableau of how individual elements of dimensions or measures contribute to bringing a total value of a parameter.