In today's fast-paced business world, data visualization is more important than ever. One powerful tool that can help you quickly identify the most significant factors in a dataset is the Pareto Chart. This type of chart is particularly useful for prioritizing problems or identifying the most frequent defects in a product. In this blog, we'll walk you through how to create a Pareto Chart in Excel 2024 step by step. Whether you're a project manager, a quality control specialist, or just someone looking to better understand your data, this guide will be helpful.

Creating a Pareto Chart can seem daunting at first, but with Excel 2024, the process has become much more streamlined and user-friendly. We'll cover everything from preparing your data to adding the final touches that make your chart visually appealing and easy to interpret. By the end of this tutorial, you'll be able to create a Pareto Chart that clearly highlights the most critical issues in your data, allowing you to focus your efforts where they matter most.

We'll also recommend several AI diagram generation tools that can help you create these charts even more efficiently, saving you time and effort. These tools leverage advanced algorithms to automate the process. Let's dive in and see how you can turn your data into appealing insights with just a few clicks.

Click to try AI diagram generation tool right now!

Steps to create a Pareto chart in Excel 2024

Excel is the most commonly used tool to create a Pareto chart. In excel, you can easily organize your data and use various kinds of functions to analyze and process it. Next, let me show you how to create a Pareto chart in excel 2024 step by step.

Step 1: Open a sheet

Open a workbook in Microsoft Excel. You can use an existing project or create a new spreadsheet where you can to add a Pareto graph.

Step 2: Input your data

Input your data that is used for creating a Pareto diagram.

Here we use a set of data showing “product defect types and frequency of occurrence” as an example.

The first column should be the defect type and the second column is the frequency of occurrence.

Step 3: Process your data

Select the second column “Frequency of Occurrence” and click Sort&Filter shown in the red frame and then click “sort largest to smallest”.

Then you can see the data arranged from the largest to the smallest, which is a very essential step for creating a Pareto chart.

Add “total percentage” in C1, input the following equal in C2: =B2/SUM(B$2:B$7) as shown in the picture and then press Enter. Now you can get the percentage of the first item to the total.

Then put your cursor at the bottom right corner of C2 and you can see the cursor turning into a cross. Drag the cross to the last line of data and now you get the percentages of each item to the total.

Select the data in the third column, click the % button on the top bar and you can see the data change into the percent style.

Add “Cumulative Percentage” in D1, input the following equal in D2: = C2 and press Enter. Now you can get the cumulative percentage of the first item.

Select D3 and input the following equal: =sum(C$2:C3) as shown in the picture and press Enter.

Then put your cursor at the bottom right corner of D3 and you can see the cursor turning into a cross. Drag the cross to the last line of data and now you get the cumulative percentages of each item to the total.

Step 4: Create the Pareto graph

Select the table, Click on the “Insert” tab, click the small black inverted triangle beside the column graph and you will find the Pareto graph template in Histogram. Click it and you can see a Pareto chart appear in excel.

Step 5: Customize your chart

With the chart selected, the Chart Design tab (visible only when the chart is active) on the top right corner offers tools to add chart element, quick layout and move chart to other sheets.

Add chart element: There are various elements of the chart for you to choose, including axis titles, chart title, data labels, data table, gridlines, legend and so on. You can decide whether or not to add these elements to your chart.

Quick layout: If you are tired of add elements one by one. Quick layout is a better choice, which puts numerous elements together in one set. You can choose your preferred layout based on your needs.

Move chart: You can also change the location of the chart. Click Move Chart and choose where you want the chart to be placed. It can be placed in any sheet you prefer.

Now that you’ve mastered the art of creating a Pareto Chart in Excel 2024, you might be wondering if there are even more efficient ways to handle data visualization. While Excel is a powerful tool, sometimes you need something that can streamline the process even further, especially when dealing with large datasets or tight deadlines. This is where AI-powered diagram generation tools come into play. These tools, such as PicDoc, offer a seamless way to create not just Pareto Charts, but a variety of other visualizations with minimal effort. Let’s explore how these tools can enhance your productivity and take your data analysis to the next level.

Powerful AI Chart Generation Tools

PicDoc: AI-Powered Visualization Tool

PicDoc simplifies data visualization through AI-driven text-to-chart conversion. Its core capabilities include:

1. Intelligent Chart Generation

Text-to-Visual Conversion: You can put descriptive phrases (e.g., "global smartphone market share by region") or paste text blocks onto a canvas. Click the blue button and PicDoc can generate a chart based on the text in seconds.

Amazing right? Click here to give PicDoc a shot!

Automated Workflow: Click the AI button to instantly generate flowcharts, infographics, mind maps, or syntax diagrams (e.g., breaking down sentence structures like subjects/verbs/objects).

Editable Outputs: All auto-generated visuals are fully customizable post-creation.

2. Design Flexibility & Brand Integration

Adaptable Styling: Modify colors, fonts, labels, and chart types to align with branding or presentation themes.

Dynamic Format Switching: Easily convert between visualization formats (e.g., flowchart → infographic) without data re-entry.

3. Free of charge & Global Use

Free Access: PicDoc offers these features at no cost. You can use it for free with no need to worry your budget.

Multilingual Support: You can input content in any language and PicDoc can generate visuals in corresponding language based on your text.

4. Export & Application

Multi-Format Export: Save charts as PDF, PNG, or JPG for reports, presentations, or digital platforms.

Cross-Platform Utility: Ideal for educators, content creators, and business teams needing rapid visuals.

Mathcracker

The graphical tool creates a Pareto Chart based on the data you provide in the boxes below. All you have to do is type your frequency data and also name of the categories. Then click Graph it and the tool will deliver a Pareto chart based on the data entered.

It greatly streamlines Pareto chart creation without complex software setup.

However, this tool is not totally free. You need to pay monthly or annually fee for unlimited generation and premium services. The following is its pricing.

Visual Paradigm

Visual Paradigm is a comprehensive visual modeling and project management platform used for IT project lifecycle management, agile development, and enterprise architecture design. It supports:

Diagramming & Modeling: Creation of UML, BPMN, ERD, SysML diagrams, and 40+ other chart types via drag-and-drop tools.

Collaboration & DevOps: Cloud-based team collaboration, code engineering (forward/reverse generation for 10+ languages), and database design.

AI Enhancements: Features like text-to-diagram generation and automated reporting streamline complex tasks.

Strengths:

All-in-One Suite: Unifies software design, project management, and DevOps in a single platform.

Industry Compliance: Certified support for TOGAF, ArchiMate, DoDAF, and PMBOK standards.

Pricing:

Subscription-based, starting at $99/month for the Standard edition (per user). Enterprise plans with advanced features (e.g., cloud collaboration, custom templates) require custom quotes. Academic discounts available.

Power BI + Pareto by sio2Graphs

Core Features:

Zero-Code Automation: Automatically calculates cumulative percentages, sorts data, and generates combined bar-line Pareto charts with drag-and-drop fields (no DAX formulas needed) .

Seamless Integration: Directly usable within Power BI (via AppSource), supporting real-time data updates.

Customization: Adjust colors, gradients, fonts, and line styles for visual consistency.

Strengths:

Speed: Ideal for quick Pareto analysis in business intelligence workflows.

User-Friendly: Eliminates complex coding, perfect for Power BI users.Limitation:

Category Limit: Only displays top 10 categories; ignores others (unsuitable for granular datasets).

Best For: Power BI users needing rapid, code-free Pareto charts for reports/dashboards.

That’s a wrap on our guide to creating Pareto Charts in Excel 2024 and exploring AI-powered diagram tools! Whether you’re sticking with Excel for its familiarity or diving into tools like Visual Paradigm, PicDoc, or Mathcracker’s Pareto Chart Maker for enhanced efficiency, the key is to find what works best for you. Happy charting! Click here to try PicDoc for free.