How to Create a Bar Chart in Excel
In this article, you will learn about the Bar Chart and how to create it in Excel.
What is a Bar chart in Excel?
A Bar chart in Excel is a type of chart visually representing data using rectangular bars. Each bar in the graph represents a category of data, and the length of the bar corresponds to the value of the data for that category. Bar charts are commonly used to compare data values across different categories.
How to make a Bar chart in Excel
In this article, we will guide you through the steps to create a bar chart in Excel.
Step 1: Organize your data
Before we begin creating our bar chart, we need to ensure our data is organized properly. This means our data should be in a table format, with each column representing a different category or data point.
The example dataset taken is for an insurance company revenue generated by selling policies across different categories in different quarters. The objective is to determine data trends regarding revenue generated across quarters for varying policy categories.
In terms of data preparation, you need to ensure a clean, formatted, and consistent dataset.
Step 2: Select your data
Once our data is organized, we can select the data we want to include in our Bar chart. To do this, simply click and drag your mouse over the cells containing the data. If you have a large dataset, you can hold down the "Ctrl" key and select multiple data ranges.
The dataset chosen will be highlighted by a border across the text for visual confirmation.
Step 3: Insert the Bar chart
With our data selected, we can now insert a Bar chart into our spreadsheet. To do this, navigate to the "Insert" tab on the Excel ribbon and select "Bar Chart" from the chart options. You can choose from various bar chart types, including clustered, stacked, and 3D.
Step 4: Add a chart title and legends
To make your bar chart more informative, you can add a “title” and a “legend”. The title should clearly state what the chart represents, while the legend should provide information about the categories defined by the different segments of the graph. To add a title and legend, click on the chart to select it, then use the “Add Chart Element” followed by the “Chart Title” option in the "Chart Design" tab to add them. You can choose the Title layout from the sub-menu.
Another way to quickly access “Chart Elements” is to click on the + icon at the top right corner when you select the chart.
You can rename the Chart Title by clicking on the Title and editing the text directly. The “Format Chart Title” menu appears on the right side of Excel, where you can change the Chart Title's background color and set the Transparency options.
If you click on the Legends, then the “Format Legend” menu appears, which lets you define the position of legend appearance over the chart. You can also modify the text font, colors, and background color.
Step 5: Customize your Bar chart
Once you have inserted your Bar chart, you can customize it to fit your needs. You can change the chart title, axis labels, and legend to provide context for your data. You can also adjust the color scheme and chart style to make your chart visually appealing.
To customize the chart, click it to select, then use the options in the "Chart Design" and "Format" tabs in the ribbon. Using the quick access “Chart Elements”, you can enable the “Data Labels” and choose the layout option.
You can set the color scheme using the quick access “Chart Styles” and even choose a desired chart style.
The “Format Data Series” menu appears whenever the chart series is selected. From the dropdown list, you can choose the Chart Area, Title, Legend, Plot Area, and Series for customization.
Selecting the Chart Styles
You can utilize the various chart styles present in Excel to quickly decorate your chart and give it a professional look. This is very useful if you need to promptly customize your chart and give it a clean and crisp look but need to figure out how to utilize various customization options or proceed with customization.
You need to click the “Chart Design” menu and then the dropdown button to expand the chart styles in the “Chart Style” group. Once you hover your mouse, the chart styles are applied to your existing chart for a quick preview to select and choose.
Step 6: Analyze your data
Now that you have created your bar chart, you can analyze your data to gain insights and draw conclusions. Look for trends and patterns in your data and use your chart to illustrate these findings to your audience.
Looking at the plotted chart, we could quickly determine that policies sold in the Automobile Insurance category have seen a rise each quarter, health insurance dominates other categories, and travel insurance has underperformed consistently across all quarters or is relatively lagging in comparison to other categories, which can be an action point for further planning in respective categories.
Creating a Bar chart in Excel may seem daunting initially, but by following these simple steps, you can create a visually appealing and informative chart in no time. So go ahead and impress your audience with your newfound Excel skills!
When should I create a Bar chart in Excel?
A Bar chart is a useful visual tool for comparing and presenting data across different categories or subgroups. It is beneficial when dealing with large data sets and longer labels. Bar charts are effective for displaying information segments and are commonly used to show distribution or perform metric value comparisons.
It is widely used across various industries because it is easy to prepare without much effort and effectively compares different variables and independent data sets. Additionally, Bar graphs are useful for studying patterns over extended periods.
The below pointers will assist you in determining when to use the bar chart:
- Values of each category need to be viewed intuitively.
- Items on the chart have over 5 categories.
- A comparison of data is needed on the chart.
- A part against the whole relationship of the category is needed
Important note about Bar charts in Excel
Some properties that make a Bar graph unique and different from other types of charts are given below:
- All rectangular bars should have equal width and space between them.
- The rectangular bars can be drawn horizontally.
- The length of the rectangular bar is equivalent to the data they represent.
- The rectangular bars must be on a common base.
What you may also know: 3D Bar chart and Types of Bar chart
A 3D Bar chart is a type of chart that displays rectangular bars with a third dimension added to it, making it appear as a three-dimensional object. In a 3D Bar chart, each rectangular bar's length represents the values of the data displayed.
This type of chart is used when you want to represent data in a way that emphasizes the depth or volume of the data. It can be useful for showing complex data relationships, mainly when multiple variables are involved. However, it can also make reading and interpreting the chart difficult, especially if the data is not arranged clearly.
Bar charts are mainly classified into two types:
Vertical Bar: A vertical bar chart uses rectangular bars to represent data, with the bars arranged vertically along a vertical axis. It is useful for comparing data values across different categories or subgroups. It is also commonly called a Column Chart.
Horizontal Bar Graph: A horizontal bar chart uses rectangular bars to represent data, with the bars arranged horizontally along a horizontal axis. It is helpful in comparing data values across different categories or subgroups and is particularly effective when the labels are long.
