Create Pareto Chart In Power BI

 What is Pareto Analysis?

Pareto Analysis is a decision-making technique based on the Pareto Principle, also known as the 80/20 rule. This principle suggests that 80% of outcomes result from 20% of the inputs or efforts.

 

Examples of the Pareto Principle:

  1. 20% of employees contribute to 80% of the work.
  2. 20% of drivers are responsible for 80% of accidents.
  3. 80% of a company's revenue comes from 20% of its products.

How to create Pareto Chart in Power BI

A Pareto chart combines bars and a line graph. The bar lengths represent the sum of values (e.g., sales), while the line indicates the cumulative percentage total. Below is a step-by-step guide to creating a Pareto chart in Power BI.


The screenshot of the pareto chart is shown below.

 

anmolmalviya05_0-1736838265398.png

 

Step 1: – Pick the visual “Line and clustered column chart” Drag the sales and product category from the field section to the value fieldand the sum of sales is represented in descending order.

 

anmolmalviya05_1-1736838279481.png

 

Step 2: – Calculate the Cumulative sum of the sales.

Cumulative sales =

Var A= SUM(Orders[Sales])

return

SUMX(

    FILTER(

        SUMMARIZE(ALL(Orders),Orders[Product Sub-Category],

        “revenue”,[Sales_]),

        [revenue]>=A),

        [revenue]

)

Step 3:- In order to create a line graph, create a measure with a cumulative percentage.

cumulative percentage =
Var A=[Cumulative sales]

var B=CALCULATE([Sales_],All(Orders))

return DIVIDE(A,B)

Drag the Cumulative percentage measure from the field section to the Line y-axis field.

 

anmolmalviya05_2-1736838295173.png

 

Step 4:- I have also added a static 80% line.
line = 0.8

 

anmolmalviya05_3-1736838309600.png

 

The Pareto chart helps identify the key contributors to your sales. As shown in the example, the spotlight product category accounts for 80% of the revenue.

 

Best Regards
Anmol Malviya

Data Analyst | Addend Analytics

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