How to Add a Trendline in Excel Charts? Step-by-Step!

Our website is dedicated to providing clear, concise, and easy-to-follow tutorials that help users unlock the full potential of Microsoft Excel. Explore Zebra BI’s expert-selected resources combining technology and insight for practical, in-depth BI strategies. After customizing, click “Close” to apply the trend line to your graph. Similarly, if you want to display the R-squared value of the line, then check the box next to ‘Display R-squared value on the chart’. So a period value of 2 means you want the data averaged in pairs (1st and 2nd, 3rd and 4th, etc.).

1. This gives us an idea of what future values might be based on the current data trend.
2. Another way to add a trendline is to right-click on the series for which you want to insert the trendline and click on the ‘Add Trendline’ option.
3. Using trendline extensions, you can also forecast the behavior of a dataset in the future.
4. Usually, the type of trendline you use depends on the type of data you’re representing.
5. You can add a trendline to a scatter chart, bubble chart, or other kinds of charts, while a line chart is a type of chart in itself.

The power trendline is a curved line that represents data that increases or decreases a constant rate. A power trendline does not work on data that has 0 or negative values. The logarithmic trendline is a curved line that best represents data that changes (increases or decreases) at a high rate initially and then levels out.

For example, when you look at the scatter chart shown below, it’s difficult to infer much just by looking at the data points. A trendline can also be extrapolated to help you make forecasts about unplotted data points. Generally, a polynomial is classified by the degree of the largest exponent. The degree of the polynomial trendline can also be determined by the number of bends on a graph. Typically, a quadratic polynomial trendline has one bend (hill or valley), a cubic polynomial has 1 or 2 bends, and a quartic polynomial has up to 3 bends. An example of a logarithmic trendline may be an inflation rate, which first is getting higher but after a while stabilizes.

Step 4: Right-Click a Data Point

You can also share your charts and trendlines directly from Excel to other members of your team or clients. In line charts, column and bar graphs, numeric values are plotted only on the y-axis. The x-axis is represented by a linear series (1, 2, 3,…) regardless of whether the axis labels are numbers or text. When you make a trendline in these charts, Excel uses those assumed x-values in the trendline formula.

There, you can customize the following attributes of the trendline. I’ve also mentioned the parent menu where you’ll find the options listed below. You can now choose the second data series in the dialog box to add the second trendline. First, add the trendline for one data series using any of the previously explained methods. For example, you can use the Chart Element tool to add a trendline.

Troubleshooting Common Issues When Adding Trendlines in Excel

The logarithmic best-fit line is generally used to plot data that quickly increases or decreases and then levels off. To make your graph even more understandable and easily interpreted, you may want to change the default appearance of a trendline. Or simply double-click the trendline to open the Format Trendline pane. There are many formatting options available to you when it comes to trendlines.

Once you’ve created your chart, you can add a trend line in a few simple steps. Additionally, you can use data from external sources such as industry reports or economic indicators to gain a broader perspective on your business performance. By analyzing trends in the industry or the economy, you can identify potential opportunities or threats to your business and adjust your strategy accordingly. After you complete these steps, your Excel graph will display the trend line, making it easier to understand the direction your data is heading. You can further customize your trend line by adjusting the color, thickness, and forecast options. The R2 value (also known as the Coefficient of Determination) indicates how well the trendline fits the data.

Excel trendline equation is correct only in scatter charts

Adding a trendline provides a powerful visual for a data trend. This is just one of the many things you can do the help your Excel chart really stand out. The R-squared value is a number that indicates how well your trendline corresponds to your data. The closer the R-squared value is to 1, the better the fit of the trendline. Choose the trendline you want to use from the list, and it will be added to your chart.

You can add a trendline for each data series in your Excek chart. However, you must follow a secret trick that I’m showing below to easily add multiple trendlines. The R-squared value is a statistic that tells you how well the trendline fits your data. Once you’ve added trend lines in excel your trendline, you can customize it to better fit your needs. From there, select “Format Trendline” and choose the options that work best for you.

To occupy less space in the chart, Excel displays very few significant digits in a trendline equation. Nice in terms of design, it significantly reduces the formula’s accuracy when you manually supply x values in the equation. Another quick way to add trendline to an Excel chart is to right-click the data series and then click Add Trendline…. A trendline, also referred to as a line of best fit, is a straight or curved line in a chart that shows the general pattern or overall direction of the data.

Additional Tips:

For more information, please see How to use the LINEST function in Excel. R-squared value (Coefficient of Determination) indicates how well the trendline corresponds to the data. When drawing the line of best fit in Excel, you can display its equation in a chart.