How To Create A Pareto Chart In Excel (Static And Dynamic)?

Data visualization has greatly contributed to the rate at which readers consume data that is presented to them. Initially, most people struggle when it comes to consuming technical data since they have never had hands in the technical space. 

You can easily communicate with your target market without calling for any form of interpretation since data visualization addresses all the essential touchpoints. 

A Pareto chart is one of the most popular data visualization tools used in data presentation to enhance clarity when composing data reports, among other technical aspects. The chart gives you room to visualize any type of data and is presented in an attractive way that readers can easily translate without calling for your aid. 

Companies that compose regular reports use this method to address their readers and stakeholders across the industries. 

Considering the amount of data collected across industries is increasing daily, the power of data visualization has increased dramatically since it helps individuals achieve their objectives. Any company that is not making serious use of data is said to be on the wrong side since there is a need for business stakeholders to use data when making key development decisions. 

When using data visualization to facilitate your day-to-day activities, it is also important to learn how to create some of these charts when presenting data. A Pareto chart is one of these chats that most people utilize during data visualization to help them access valuable insights that are hidden in data. 

Regardless of its benefit towards business development, some people still find it too difficult to compose the chart and use it to achieve their goals. 

This particular shed light on the steps to create an Excel Pareto chart. Stick to this article to the end. 

What is a Pareto Chart? 

A Pareto chart is a simple bar graph used when ranking related measures based on an increasing order of the currencies. This technique of data visualization was invented by an Italian economist who wanted to compare data between wealthy people and the levels of poverty in Europe. 

The invention was put into practice in the early 1990s, whereby it was revealed that wealth is mainly concentrated on a few people while poverty is spread in a comprehensive area. 

The chart operates by visualizing the unequal distribution of resources from one part to the other, depending on the nature of your analysis. This is where the 80/20 rule was established to help in data analysis. 

The primary objective of the chart is to identify and separate the most significant aspects of a given problem. When these aspects are separated using a graphical format, it becomes easier for you to recognize the change that has occurred across the datasets. 

Business teams use this method to visualize data and identify areas that require improvement to increase the growth path. When using the chart for data visualization, you will realize that reducing the larger bars greatly impacts business development compared to raising the smaller bars. 

Using this chat requires you to acquire some basic guidance on how to navigate the process to enhance the accuracy of the data output and the general functionality of the chart. 

Best Practices When Using a Pareto Chart 

When using a Pareto chart, there are various best practices that you need to consider in order to get the best from the chart. They include: 

  • Multi-Perspective Analysis 

A multi-perspective analysis is a circumstance whereby data is subdivided into different categories to make it easier for you to analyze. Business managers can use the same approach to analyze customer returns and evaluate the company’s profit margin. 

It is a great method to use to elevate the accountability levels within the business environment, creating a favorable business model for your company’s growth. 


Subdivision is important when data is recorded for the first time at a general level. Remember that problem-solving needs to occur at a specific level, not in general. This is mainly because problem-solving is meant to identify issues within a specific segment and identify a lasting solution to curb the problem. 

  • Repeat Analysis

Repeat analysis is conducted when a problem is already found, and a solution is offered. This process helps you to identify whether the given solution has made any changes to the existing problem or if there is a need to determine another alternative. 

The same approach is also considered by company stakeholders who are trying to make changes within the business to enhance customer satisfaction. 

Types of Pareto Charts 

Pareto charts are categorized into different groups, and they operate differently. The type of Pareto chart you use mainly depends on the type of data you have and the objective you want to achieve. Below are some of the types of Pareto charts that you need to know. 

  • Static Pareto Chart 

A static Pareto chart is a simple type of chart that displays all the data, and it has no option for the user to view the data that corresponds to a given value. The chart displays data so readers can easily uncover hidden insights. This is one of the most common types of Pareto charts that is used by most business owners and digital marketers

  • Dynamic Pareto Chart 

The dynamic Pareto chart allows the user to adjust the presented data values. This chart type allows you to make advancements on the existing data and customize it based on your requirements. The flexible nature of the dynamic Pareto chart makes it a better option for individuals who need to make regular changes to datasets. 

Creating a Pareto Chart in Excel 

A Pareto chart is one of the easiest charts you can create using Excel. It only takes a few steps to compose the chart and present all your data values. 

Excel is a reputable data visualization tool that can help you compose any type of chart provided that you clearly understand your objective. However, there is something you need to understand when using this tool to compose the chart. 

Excel does not give you a chance to create a Pareto chart using a default option. This means that you need to adopt a different route that will help you create the chart with ease. Excel allows you to adopt different third-party applications that offer you an alternative to creating the Pareto chart. 

You don’t need to adopt different means or discard away Excel to create the chart. The only available solution that can help you get the job done is to acquire an Excel add-on that has different charting options. 

The next step is to visit Microsoft Store and identify a suitable exile add-on with a successful track record of creating different types of charts. There are different options available, but you can easily download and integrate with Excel. Ensure you have access to accurate data you intend to use to create the chart. After downloading the tool, sign in using your Microsoft account and peruse the available options to identify your preferred chart. 

Accessing a reliable Excel add-on will help you create a Pareto chart within the shortest time possible and complete the technical work on your behalf. 

Final Verdict 

Creating a Pareto chart is fun, but you can easily conduct it in Microsoft Excel. The chart helps you visualize data sets and extract useful insights that are significant in making development decisions. Even though the process may be difficult at the beginning, all you need is to acquire a live application that will simplify the technical part. 

In addition, you need to understand the type of Pareto chart you want to create based on the available data. The data you intend to visualize will help you recognize a suitable type of Pareto chart you can easily create.