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Home > Blog > Data Visualizations >

How to Create Pareto Chart in Google Sheets?

Creating a Pareto chart in Google Sheets is a simple yet powerful way to visually display the most significant factors in your data. This type of chart, based on the Pareto principle or 80/20 rule, helps identify the few key causes that contribute to the majority of an outcome.

How to Create Pareto Chart in Google Sheets
How to Create Pareto Chart in Google SheetsHow to Create Pareto Chart in Google Sheets

Whether you’re analyzing sales, defects, or other data, a Pareto chart makes it easier to prioritize areas for improvement. In this guide, we’ll walk you through the step-by-step process of creating a Pareto chart in Google Sheets, helping you turn raw data into actionable insights.

Visualizing large sets of data on Google Sheets is complex and time-consuming. It doesn’t have to be like that, as you shall see later.

This blog post will walk you through the incredibly easy and time-saving steps of how to create/make a Pareto Chart in Google Sheets to empower your analysis skills.

Table of Content:

  1. What is the Pareto Chart in Google Sheets?
  2. How to Create a Pareto Chart in Google Sheets: Step-By-Step
    • Step 1: Enter and Organize Your Data
    • Step 2: Sort Data in Descending Order
    • Step 3: Calculate Cumulative Percentages
    • Step 4: Insert a Combo Chart
    • Step 5: Customize the Pareto Chart
  3. How to Draw Pareto Charts in Google Sheets using Third-Party Add-ons?
  4. FAQs About How to Create Pareto Chart in Google Sheet
  5. Wrap Up

What is the Pareto Chart in Google Sheets?

A Pareto Chart in Google Sheets is a visual tool that combines bar and line graphs to identify and prioritize the most significant factors contributing to an outcome, based on the 80/20 rule.

It displays individual category frequencies as bars and cumulative percentages as a line, helping users focus on the vital few issues. This chart aids in effective decision-making by highlighting the key areas needing attention.

How to Create a Pareto Chart in Google Sheets: Step-By-Step

How to Create Pareto Chart in Google SheetsHow to Create Pareto Chart in Google Sheets

Step 1: Enter and Organize Your Data

Start by inputting your data in two columns. One for categories (e.g., types of defects) and another for frequencies or values (e.g., number of occurrences). Ensure the data is correctly entered, as this will form the basis for the chart.

Pareto Chart in Google Sheets 1

Step 2: Sort Data in Descending Order

Select your data and sort the values in descending order based on the frequency column. This ensures that the Pareto principle (80/20 rule) is properly reflected in your chart, with the most significant factors listed first.

Pareto Chart in Google Sheets 2

Step 3: Calculate Cumulative Percentages

Next, calculate the cumulative percentage for your data:

  1. Add a new column for cumulative values.
  2. In the first cell, enter the formula to divide the current value by the total sum.
  3. Drag the formula down to fill the column, ensuring it calculates the cumulative percentage for each category.
Pareto Chart in Google Sheets 3

Step 4: Insert a Combo Chart

Highlight the data and go to Insert > Chart. Choose a Combo Chart that combines a bar chart (for frequencies) and a line chart (for cumulative percentages).

Pareto Chart in Google Sheets 4

Step 5: Customize the Pareto Chart

  1. Format the bars to represent the frequencies.
  2. Set the cumulative percentages as a line chart on the secondary Y-axis.
  3. Adjust titles, axis labels, and colors for clarity.
Pareto Chart in Google Sheets 5
Pareto Chart in Google Sheets 6

How to Draw Pareto Charts in Google Sheets using Third-Party Add-ons?

It’s no secret there are dozens of data visualization tools in today’s market.

Some of these tools require you to have uber technical skills, such as programming or coding. Others prioritize the beauty and aesthetic of charts at the expense of critical insights.

The third-party add-on we recommend to our readers is ChartExpo. This is based on a checklist (below) we use to evaluate tools in the market.

  • Affordability: You don’t want a tool that’s too pricey for your needs, especially with the current recession (thanks to Coronavirus).
  • Ease of use: The last thing you want is a tool that comes with hours of YouTube tutorials or written manuals. Or a tool that requires you to be a programmer or coding expert. Do you have that time?
  • Impact on your browser: Again, you don’t want a visualization tool that slows your browser. You deserve a seamless experience when seeking answers from your data.
  • Quality of charts and graphs produced: The last thing you want is a graph maker that produces charts your target audience finds too complex.

ChartExpo scores 100% on all key factors we’ve featured in our checklist.

As we said, you’ve got to avoid scratching the surface of your data with basic charts, such as Bar Graphs. How?

You can achieve this by embracing Pareto Charts in your data visualization strategy. ChartExpo provides you with unlimited access to Pareto, plus more than 50 other charts.

And it gets better.

The cost of accessing these charts is ZERO. Yes, you read that right.

Let’s agree on this. How to Draw a Pareto Chart does not have to be stressful. Yes, it should not be the reason why you never get in-depth, actionable insights from your data.

Let’s take a look at an example (below) to get you started with Pareto Charts.

Example Data For Pareto Chart in Google Sheet

Imagine you run an e-commerce store. You want to know how your brand performs at the city level by comparing previous and current periods.

Which chart would you use to uncover the 20% of cities driving 80% of the overall brand’s sales?

Yes, you guessed right. This is where a Pareto Diagram comes in. Let’s use the table below for our scenario.

City Current Period Sales Previous Period Sales
New York 540 510
Chicago 550 545
San Francisco 415 399
Los Angeles 572 533
Seattle 193 185
Boston 188 163
Phoenix 497 485
Atlanta 215 180
Philadelphia 489 470
Miami 387 267
Dallas 7 5
Houston 5 3
St Louis 7 4
Columbus 1 1
Fresno 6 3
Mesa 2 2
Oakland 3 1
San Antonio 1 2
San Diego 1 1
San Jose 2 3
Austin 5 3
Jacksonville 3 2
Fort Worth 3 3
Charlotte 2 1
Indianapolis 1 2
Denver 4 3
Washington 5 2
El Paso 7 5
Nashville 5 3
Detroit 3 2
Oklahoma City 2 1
Portland 2 3
Las Vegas 3 2
Memphis 3 1
Louisville 4 1
Baltimore 5 3
Milwaukee 1 1
Albuquerque 2 1
Tucson 1 1
Sacramento 4 3
Kansas City 2 1
Colorado Springs 4 3
Omaha 2 1
Raleigh 4 3
Long Beach 2 1
Tulsa 4 3
Tampa 2 1
Arlington 4 3
New Orleans 2 1
Wichita 4 3
Bakersfield 2 1
Aurora 1 2
Anaheim 3 2
Honolulu 1 3
Santa Ana 3 2
Riverside 1 5
Corpus Christi 3 2
Lexington 1 1
Henderson 3 2
Stockton 1 1
Saint Paul 3 2
Pittsburgh 1 2
Lincoln 3 2
Anchorage 1 1
Plano 3 2
Orlando 1 2
Irvine 3 2
Newark 7 3
Durham 5 1
Chula Vista 2 2
Toledo 5 1
Fort Wayne 2 1
Lubbock 5 2
Jersey City 2 2
Scottsdale 5 3
Reno 2 3
Glendale 5 3
Norfolk 2 1
Irving 5 2
Garland 1 2
Hialeah 4 1
Richmond 1 3
Boise 5 2
Tacoma 1 1
Fontana 5 1
Birmingham 1 1
Frisco 2 1
Augusta 1 1
Tempe 2 1
Little Rock 1 1
Overland Park 2 1
Grand Prairie 1 1
Ontario 2 1
Brownsville 1 1
Santa Rosa 2 1
Eugene 1 1
Lancaster 2 1
Palmdale 1 1
Joliet 2 1
Midland 1 1
  • To get started with Pareto Charts, copy the table above into your Google Sheets.
How to draw Pareto chart
  • This is the point where you unleash ChartExpo. Head to the Add-on button>ChartExpo — Best Data Visualization Tool button>Open.
How to draw Pareto chart
  • Click the Create New Chart button to access your fully stocked library of charts.
How to draw Pareto chart
  • Click the Search Box and type Pareto Charts. It should pop up together with other charts.
  • Select the sheet holding your data and select the Metrics option. Fill in the numerical numbers (in our scenario, we’ll fill in previous and current period sales)
  • Select the Dimensions field and fill on the dimensional data (in our example, we’ll use City)

How to draw Pareto Chart does not have to be time-consuming. ChartExpo makes the whole process seamless and easy.

How to draw Pareto chart
  • Finish the simple process by clicking the Create Chart button to visualize your data with Pareto Charts.
  • If you follow the instructions (above), your Pareto Diagram should look like this (below).
How to draw Pareto chart
How to Create Pareto Chart in Google SheetsHow to Create Pareto Chart in Google Sheets

Insights

Los Angeles, Chicago, New York, Phoenix, Philadelphia, San Francisco, and Miami are the best-performing cities. In other words, they constitute 20% of cities driving 80% of the overall sales revenue.

As we said, how to draw a Pareto Chart in Google Sheets does not have to consume your valuable time.

FAQs About How to Create Pareto Chart in Google Sheet

What is the first thing to do when creating a Pareto chart?

The first thing to do when creating a Pareto chart is to collect and organize your data. This involves identifying the categories you want to analyze, gathering the relevant data for each category, and then sorting the data in descending order based on frequency or impact.

This step ensures that the most significant categories are highlighted, which is essential for the effectiveness of the Pareto chart.

How do you manually create a Pareto chart?

To manually create a Pareto chart:

  1. Collect and sort data in descending order.
  2. Calculate cumulative percentages for the categories.
  3. Create a bar chart for the frequencies or values.
  4. Plot a line for the cumulative percentages over the bars.

Wrap Up

Creating a Pareto chart in Google Sheets involves collecting and sorting your data, calculating cumulative percentages, and then using Google Sheets’ built-in chart tools to plot the data as a bar chart with a cumulative line.

While Google Sheets provides basic charting functionality, using a tool like ChartExpo can significantly enhance the process. ChartExpo offers a more user-friendly interface, better customization options, and advanced visualizations, making it easier to create professional-quality Pareto charts quickly and effectively.

Whether you’re working on complex data sets or looking for simplicity, ChartExpo streamlines the entire process.

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