1️⃣ What Is a Stacked Area Chart?
A Stacked Area Chart shows:
- The total value over time
- The contribution of each category to that total
It combines:
- Area chart
- Multiple data series stacked on top of each other
2️⃣ Example Dataset: Revenue by Product
| Month | Product A | Product B | Product C | |-------|-----------|-----------|-----------| | Jan | 1000 | 800 | 600 | | Feb | 1200 | 900 | 700 | | Mar | 1500 | 1100 | 900 | | Apr | 1700 | 1300 | 1000 | | May | 2000 | 1500 | 1200 |
3️⃣ What the Stacked Area Chart Shows
From this data, a stacked area chart shows:
- Total revenue each month
- How much each product contributes
- Whether one product is growing faster
For example:
January Total = 1000 + 800 + 600 = 2400
May Total = 2000 + 1500 + 1200 = 4700
You can visually see:
- Total revenue growth
- Product A growing strongly
- Product C increasing steadily
4️⃣ When to Use a Stacked Area Chart
Use it when:
- You want to show total growth
- You want to show contribution of categories
- You want to see overall volume change
It answers:
- Is the total increasing?
- Which category contributes most?
- Is one category shrinking?
5️⃣ What Is a 100% Stacked Area Chart?
A 100% Stacked Area Chart shows:
- Percentage contribution of each category
- Relative comparison
- Composition change over time
Unlike normal stacked area:
- It does NOT show actual totals
- It shows percentages only
6️⃣ Example Dataset (Same Data, But Viewed as Percentage)
| Month | Product A | Product B | Product C | |-------|-----------|-----------|-----------| | Jan | 42% | 33% | 25% | | Feb | 43% | 32% | 25% | | Mar | 43% | 31% | 26% | | Apr | 43% | 33% | 24% | | May | 43% | 32% | 25% |
(Percentages calculated from total revenue each month)
7️⃣ What the 100% Stacked Chart Shows
It helps you analyze:
- Market share changes
- Category dominance
- Composition stability
From the table above, you can see:
- Product A consistently around 43%
- Product C slightly fluctuates
- Overall composition remains stable
8️⃣ Key Difference Between the Two
| Feature | Stacked Area Chart | 100% Stacked Area Chart | |----------|-------------------|-------------------------| | Shows actual totals | Yes | No | | Shows percentages | No | Yes | | Shows growth in volume | Yes | No | | Shows proportion change | Yes | Yes | | Best for revenue analysis | Yes | Limited | | Best for market share | Limited | Yes |
9️⃣ When to Use Each Chart
🔹 Use Stacked Area Chart When:
- You care about total growth
- Revenue amount matters
- Budget totals matter
🔹 Use 100% Stacked Chart When:
- You care about proportions
- Market share matters
- Composition matters more than totals
🔟 How to Insert in Excel
- Select your data
- Go to Insert Tab
- Choose:
- Stacked Area
- 100% Stacked Area
No formulas required.
1️⃣1️⃣ Business Example: Market Share Analysis
Imagine three companies competing:
| Year | Company A | Company B | Company C | |------|------------|------------|------------| | 2020 | 40% | 35% | 25% | | 2021 | 45% | 30% | 25% | | 2022 | 50% | 28% | 22% | | 2023 | 55% | 25% | 20% |
A 100% stacked chart clearly shows:
- Company A gaining dominance
- Company B shrinking
- Company C declining
1️⃣2️⃣ Analysis Questions to Ask
| Question | Why It Matters | |-----------|----------------| | Is total increasing? | Business growth | | Which category dominates? | Competitive strength | | Is composition changing? | Market shift | | Is one category shrinking? | Risk indicator | | Are contributions stable? | Business consistency |
1️⃣3️⃣ Common Beginner Mistakes
- Using stacked chart with too many categories
- Using 100% chart when totals matter
- Ignoring axis labels
- Not adding legends
- Using too many colors
1️⃣4️⃣ Visual Comparison Example
Imagine:
Total revenue doubled, but proportions stayed same.
Stacked Area Chart:
- Shows total doubling
100% Stacked Chart:
- Looks identical (because proportions didn’t change)
This is very important to understand.