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Data Presentation - Pie Charts

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A pie chart is a type of graph in which a circle is divided into sectors that each represents a proportion of the whole. Pie charts are a useful way to organize data in order to see the size of components relative to the whole, and are particularly good at showing percentage or proportional data. While pie charts are popular data representations, they can be hard to read, and it can be difficult to compare data from one pie chart to another. Pie charts are a useful way to visualize information that might be presented in a small table.

source: ers.usda.gov

The pie chart above shows the distribution of fluid milk in the U.S. in 2013. Note: the percentages in the names of the milk, "plain 1% milk," "plain 2% milk," etc. indicate different types of milk.

The entire circle encompasses all of the fluid milk, and the sectors represent specific products that use a percentage of that milk. For example, 35% of fluid milk was used in plain 2% milk, and 1% of fluid milk was used in eggnog and buttermilk.

This milk data is well represented in a pie chart since there are a small number of categories (types of milk) that can be modeled as a portion of a whole (total amount of milk).

Say the pie chart above represents the breakdown of 100 gallons of milk. Create a 2-column table that lists the type of milk in the first column and the number of gallons of each type of milk in the second column. Show Answer Type of Milk Number of Gallons Plain 2% 35 Plain 1% 14 Skim 14 Plain Whole 27 Flavored 9 Eggnog and Buttermilk 1 If there are 100 gallons of milk, and 27% of that milk is whole milk, then 27 gallons is whole milk. If 14% of the milk is skim milk, 14 percent of 100 gallons is 14 gallons, and so on.

Making a Pie Chart

Pie charts are good for showing how the size of one part relates to the whole.

To make a pie chart, separate the data into components. In the pie chart above, the data is about all fluid milk in the U.S., and the categories are plain 2% milk, plain whole milk, plain 1% milk, skim milk, flavored milk, and eggnog and buttermilk. Next, determine the ratio or percentage that each component takes up out of the whole. The total sum of percentages should sum to 100%. Divide the circle into proportional sectors. If a particular component made up 25% of the whole, a quarter of the circle would represent that component. Color is often used to differentiate sectors.

Good practices for making pie charts: Title the chart. Use labels to denote categories. If ratios are unclear, label sectors with the percentages they represent. Use different colors for each sector. Don't repeat colors. Use accurate sizing when making sectors. For example, a sector representing 50% of the whole should take up exactly half of the circle. Make sure that the number of slices is small enough that the reader can make sense of the chart.

What is wrong with this pie chart? source: wikipedia Show Answer This pie chart has too many sectors. It is hard to see how sectors compare with one another.

What could be improved about this pie chart? This pie chart describes the distribution of native English speakers by country. source: wikipedia Show Answer This pie chart could benefit from a descriptive title, and it might be helpful to include labels for the percentages of each sector as the “Canada,” “Other,” and “Australia” sectors look roughly the same size.

What food group has about the same daily calories per capita as grain products?

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A complete guide to pie charts

Posted by: mike yi.

Despite often being maligned, the pie chart remains a very commonly-seen chart type. In this article, you will learn how to best use this frequently-misused chart type.

What is a pie chart?

A pie chart shows how a total amount is divided between levels of a categorical variable as a circle divided into radial slices. Each categorical value corresponds with a single slice of the circle, and the size of each slice (both in area and arc length) indicates what proportion of the whole each category level takes.

The pie chart above depicts the distribution of votes for a fictional election for a small city. We can see that Reyes, represented by the first blue slice, has just less than half of the votes. Chu (yellow) is in second, with about a third of the votes, while Williams (purple) is last, with about a fifth of the votes. The annotations in the upper right give us a more precise judgment of the proportions, but the pie chart tells the overarching story of where the votes fell.

When you should use a pie chart

Pie charts have a fairly narrow use-case that is encapsulated particularly well by its definition. In order to use a pie chart, you must have some kind of whole amount that is divided into a number of distinct parts. Your primary objective in a pie chart should be to compare each group’s contribution to the whole, as opposed to comparing groups to each other. If the above points are not satisfied, the pie chart is not appropriate, and a different plot type should be used instead.

The values that comprise a whole and the categories that divide the whole generally come in two major varieties. First of all, is when the ‘whole’ represents a total count. Examples of this include votes in an election divided by candidate, or number of transactions divided by user type (e.g. guest, new user, existing user).

A second type of ‘whole’ is when the total is a sum over an actual data variable. For example, we might be interested not in the number of transactions, but the monetary total from all transactions. Dividing this total by an attribute like user type, age bracket, or location might provide insights as to where the business is most successful.

Example of data structure

Data for a pie chart can be summarized in a table like the above, where the first column indicates a category, and the second the proportion, frequency, or amount of that category. Usually, the total does not need to be specified separately unless it is to be listed somewhere else on a generated figure. Alternatively, some tools can just work with the unaggregated data as in the below table, essentially performing the aggregation into the table above at time of pie chart creation.

Best practices for using a pie chart

Include annotations.

It is actually very difficult to discern exact proportions from pie charts, outside of small fractions like 1/2 (50%), 1/3 (33%), and 1/4 (25%). Furthermore, if the slice values are meant to depict amounts rather than proportions, pie charts typically lack the tick marks to allow for estimation of values directly from slice sizes. It is for these reasons that annotations are a standard inclusion for pie charts.

Consider the order of slices

A good order for slices can make it much easier for a reader to understand what the plot is saying. A typical ordering goes from the largest slice to the smallest slice, very useful when there are categories with very similar values. However, if the category levels have an inherent ordering, then plotting slices in that order is usually better.

As for choosing a start point, it’s a good idea to plot slices from a cardinally-oriented direction. Visualization tools will usually start from the right or from the top. While starting from the right has a mathematical basis regarding conventions on measuring angles, starting from the top feels more intuitive, since it matches how we read from top to bottom, and how we think about progression of time on a clock or watch face.

We do not sort by size here since the labels are meaningful.

Limit the number of pie slices

Pie charts with a large number of slices can be difficult to read. It can be difficult to see the smallest slices, and it can be difficult to choose enough colors to make all of the slices distinct. Recommendations vary, but if you have more than about five categories, you might want to think about using a different chart type. As another option, you might consider lumping small slices into a single ‘other’ slice, colored in a neutral gray.

Avoid distorting effects

Reading a pie chart accurately requires that the slices’ areas, arc lengths, and angles all point to an accurate representation of the data. While avoiding 3-d effects is a good idea for any plot, it is especially important for pie charts. Squashing or stretching the circle or adding unnecessary depth can easily distort how large each slice compares to the whole.

Another distortion can come from the ‘exploded’ pie chart, where slices are pulled out from the center for emphasis. This emphasis comes with a cost, where the gaps can make it more difficult to actually gauge the part-to-whole comparison.

Common misuses

Fitting a pie to incompatible data.

One of the most common mistakes with using a pie chart is to fit it to data that does not represent a parts-to-whole comparison. This confusion occurs most often when the values to be plotted are percentages or proportions, but don’t comprise a complete whole. The example below shows how frequently the people surveyed used each of four applications, but since many people used multiple apps, the proportions sum to much more than 100%.

Another tricky case is if the values used for each group are a summary statistic that is not a total. The chart below was built on the average transaction amount for multiple transaction types. However, since it ignores how frequently each transaction type was used, it distorts how much revenue is coming in from each type. While checks have the highest average, they might also be fairly rare in use. In both cases, a bar chart is an appropriate chart type to use.

Using pie charts to compare groups to one another

If you want to make comparisons between groups rather than from each group to the whole, then you are better off with a different chart type. Even when sorting slices by size, it can be difficult to tell how different two slices are, especially when they move away from the start / end point. In the below example, you might assume that the second slice is larger than the third due to order, but the corresponding bar chart actually shows the opposite. The main thing that you can really say from the pie chart is that both slices are approximately the same proportions from the whole.

Comparing values across multiple pie charts

There may be cases where you will want to compare multiple pies to one another: for example, comparing user demographic distribution across multiple years. However, this runs into a similar issue as the previous section, where you want to compare groups to one another. Even worse, it’s a comparison between pies, so you can’t rely on the order of slices as easily for the comparison. Expressing the data using a different plot, like  stacked bar chart , grouped bar chart, or  line chart , is often a better choice when this kind of group-to-group comparison is desired. Like with actual pies, pie charts are best taken one at a time.

Comparison of the pies may imply a shrinking of the older age groups by proportion, but the grouped bar chart demonstrates a growth in the younger groups.

Common pie chart options

Absolute frequency vs. relative frequency.

Pie charts can be labeled in terms of absolute values or by proportions. Labeling slices with absolute amounts and implying the proportions with the slice sizes is conventional, but consider the goals of your visualization carefully in order to decide on the best annotation style to use for your plot. In some cases, including both numbers in the annotations can be worth the additional text.

Doughnut plot

A doughnut plot (aka donut plot) is simply a pie chart with a central circle removed. For the most part, there  aren’t significant differences in readability  between a pie chart and donut chart, so the choice of a doughnut over a standard circle is mostly that of aesthetic. One small boon for the ring shape is that the central area can be used for additional information or to report statistics.

Related plots

The biggest competition for the pie chart comes from the  bar chart . Most of the time, you won’t want to use a pie chart – rather, a bar chart will get across the points more compactly and clearly. Many of the issues with pie charts are  solved through the use of a bar chart . However, bar charts do not immediately sell the part-to-whole comparison, which is pie chart’s major benefit.

Stacked bar chart

On the other hand, the  stacked bar chart  type can prove to be a strong rival to the pie chart in its ability to communicate a part-to-whole comparison. A single stacked bar can be thought of as a pie chart’s slices rolled out into a rectangular form. The rectangular form also makes it easier to compare categorical breakdowns across different groups. However, pie charts still have an advantage in  familiarity and aesthetics , so they’re still worth having in mind for the part-to-whole comparison use case.

Waffle chart

Another alternative to the pie chart is the waffle chart, also known as a square chart or square pie. A waffle chart comprises 100 icons, typically squares laid out in a 10 x 10 grid. Each icon represents 1% of the data, and the icons are colored based on the categorical distribution of the data. While there will need to be some rounding of category amounts to fit the plot structure – never split icons in this plot – it can be a way of making the relative proportions for each category easier to read.

Visualization tools

Most visualization tools will be able to create pie charts, despite their limited use case. Donut charts are somewhat less common, but there aren’t a whole lot of cases where they’re truly needed over pie charts. Despite the fact that pie charts have fallen out of favor for most visualization needs, it is important to recognize that they are a common chart that people generally know how to read. Pie charts are still great at their ideal job: immediately selling a part-to-whole comparison objective.

The pie chart is one of many different chart types that can be used for visualizing data. Learn more from our articles on  essential chart types ,  how to choose a type of data visualization , or by browsing the full collection of  articles in the charts category .

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Pie Charts: The Ultimate Guide

• January 22, 2024
• Data visualization

Imagine slicing a perfectly baked pie, each piece a different flavor, all parts of a delicious whole. That’s what pie charts do with data. They carve out portions of information and serve them up in a colorful, easy-to-digest visual feast.

Chances are, whether it’s budget allocations or survey results, you’ve encountered these circular marvels of data visualization. But why should you care, right? Well, in a world buzzing with numbers and stats, pie charts cut through the noise, turning complex data slices into comprehensible insights. Isn’t that something?

By the end of this read, you’ll be a pie chart wizard. You’ll learn how to craft these charting tools into compelling narratives that stick.

Table of Contents

What Is A Pie Chart?

Pie chart example, when to use a pie chart, how to read a pie chart, types of pie charts, how to make a pie chart in wordpress, how to make a pie chart in excel, how to make a pie chart in google sheets.

A pie chart is a circular statistical graphic that divides a circle into slices to illustrate numerical proportions. Each slice represents a category’s contribution to the whole, typically displayed as a percentage or fraction of the total.

Chart created with wpDataTables

The pie chart’s your go-to when you want to show how individual pieces measure up to the whole.

You’ve got a few categories? You’re in pie chart territory. Say you’re breaking down how time’s spent on a project, illustrating different slices for each task. If these tasks make up the entire project time, you’ve got yourself a pie chart situation. It’s about showing the relationship, like how much of the pie goes to meetings versus actual work.

Now, when you have a lot of categories or the differences between slices are kinda subtle, maybe think twice. Too many slivers of pie, and nobody knows what they’re looking at anymore.

So, use a pie chart when:

• You have a small number of categories.
• The focus is on relative proportions.
• You want to emphasize data as parts of a whole.

Just remember the golden slice: Pie charts are best served simple, with clarity as the main ingredient.

Picture this: a pie chart’s like a wheel, each wedge a different flavor of info.

First stuff first,  check out the title . It hooks you up with what you’re eyeing – a chart about, say, favorite ice cream flavors. Without it, you’re a lost cookie in a creamery.

Now, on to the legend – it’s your flavor guide, matching colors on the pie to what they stand for.  Cherry red  for cherry,  chocolate brown  for, well, chocolate; you get the drift.

Here comes the main act, those tasty wedges. Bigger slice, bigger deal. It’s all about proportions here.

• Size up the slices:  Eyeball which piece dominates – is it mint choco chip towering over the others?
• Colors and labels:  They’re there for a reason. Match ’em up – which hue speaks for which stats?
• Savvy up on specifics:  Some pie charts get fancy, throwing in numbers or percentages on the slices.

And hey, some charts like showboating with exploded segments to highlight the Big Kahuna.

Now, let’s not leave yet.  Glance for any fine print or sources  – gotta make sure you’re biting into fresh data pie, not last week’s leftovers.

Standard Pie Chart

This is the most basic form, where different segments of a circle represent different categories. The size of each segment is proportional to the quantity it represents.

Doughnut Chart

Similar to a standard pie chart but with a hole in the middle, giving it a doughnut shape. It’s useful for comparing parts of a whole and can sometimes include multiple series of data.

Exploded Pie Chart

In this type, some or all of the slices are separated from the main pie. This is useful for emphasizing certain segments.

Polar Area Diagram (Coxcomb Chart)

Resembles a pie chart, but each segment has an equal angle, and the radius varies according to the value being represented. It’s useful for displaying cyclic data.

3D Pie Chart

A pie chart with a three-dimensional aspect. While visually appealing, it can sometimes distort data representation.

Pie of Pie or Bar of Pie Chart

This involves a second pie or bar chart emerging from a slice of the main pie chart. It’s used to highlight and give more detail to smaller slices.

This is a variant of the pie chart with an additional variable represented by the radius of each slice.

Multi-level Pie Chart

A pie chart with multiple levels or concentric circles, each representing a different hierarchy or grouping of data.

To create a pie chart in WordPress using wpDataTables , follow these steps:

• Open the Chart Creation Wizard in your WordPress admin panel by navigating to wpDataTables -> Create a Chart.
• Choose a chart name and select a rendering engine (Google Charts, Highcharts, Chart.js, or ApexCharts).
• Pick a chart type from the list provided by the selected rendering engine.
• Define the data source by selecting a wpDataTable.
• Specify the data range for the chart, selecting columns and rows from the table.
• Customize the chart’s appearance and settings, including dimensions, colors, and other format options.
• Save the chart, which will generate a shortcode.
• Use the shortcode to insert the pie chart into your WordPress post or page.

To create a pie chart in Excel , follow these steps:

• Prepare the source data for the pie chart in a single column or row.
• Insert a pie chart by selecting your data, going to the ‘Insert’ tab, and choosing your desired pie chart type.
• Customize the chart by selecting various chart styles and options for formatting, labeling, and rotating the pie chart.

To create a pie chart in Google Sheets , follow these six steps:

• Open Google Sheets and input your data, ensuring it’s organized with clear labels for each category and their corresponding values.
• Highlight the data you want to include in the pie chart.
• Go to the ‘Insert’ menu and select ‘Chart’.
• Set up your pie chart by choosing the ‘Pie Chart’ option in the Chart Editor.
• Customize your pie chart using the Chart Editor, where you can edit chart elements, modify colors, add titles, adjust the legend, and more.
• Finalize and insert the pie chart into your Google Sheets document by clicking the ‘Insert’ button in the Chart Editor.

FAQ About Pie Charts

What’s the main point of a pie chart.

It’s all about visual impact! A pie chart takes your stats and gives them life with a vivid display. Think of it as a snapshot capturing the essence of your data set, perfect for showing off those percentage breakdowns and category comparisons that might snooze-fest in a spreadsheet.

How accurately can you interpret a pie chart?

Gazing at a pie chart, it’s like each slice whispers its story to you. All hunky-dory, right? Almost. Pie charts are ace for getting the gist of things, but when it comes to the nitty-gritty, they leave room for guesswork. You want hard figures? Best pair it with precise data labels or a chart legend.

Can I compare different sets of data with a pie chart?

Let’s get this straight – pie charts are great solo artists, singing the highs and lows of a single data series. Mash up multiple data sets in one pie chart, though, and you’ve got a recipe for confusion. Stick to one chart per set for clarity that hits the spot.

Are 3D pie charts better than 2D ones?

3D pie charts are the flashy cousins of the classic 2D, bringing an extra oomph to your presentation visuals. But here’s the catch: they can skew your view, distorting data proportions like a funhouse mirror. So, for accurate data representation, keep it real with 2D.

When is it inappropriate to use a pie chart?

Overcrowd your pie, and it’s goodbye readability! Save these circular champs for the times when your category comparison is short and sweet.

How many categories can you show in a pie chart?

A pie chart’s like a cozy dinner party – you want to keep your guest list exclusive to preserve the vibe. Aim for around five to seven categories max. Too many guests, and the party – I mean, your chart – becomes a chaotic mess no one enjoys.

What are some alternatives to pie charts?

Feeling adventurous? Swap out the pie for its cousins – how about a bar chart for crisp category comparison, or a stacked bar for part-to-whole relationships with a twist? And let’s not forget the doughnut chart – it’s basically a pie chart that decided to rock a trendy central void.

How do you choose the right colors for a pie chart?

Oh, the power of colors! For your pie chart to be the belle of the ball, play with contrasting hues that pop while being considerate to those with color vision deficiencies. Pro tip: Keep your color-coded segments intuitive – like green for “go” and red for “stop”.

Can pie charts be misleading?

Tricky, tricky pie charts, they can be sneaky little things. With their round faces and colorful slices, they can exaggerate or undersell differences if they’re not crafted with care. Choose them wisely, and always double-check that proportions match the real story.

What’s the optimal way to order the slices in a pie chart?

Arrange your pie slices by size – it’s not just tidier; it helps the eye follow the data flow. Start with the chunkiest slice at 12 o’clock and work your way down. This visual storytelling makes your data warmer, friendlier, and instantly more relatable.

Visual analytics  like this? They’re not just about pretty colors and shapes. They’re data heroes, transforming  statistical data  into something that anyone can nibble on and digest.

Remember, it’s not about tossing in a pie chart for the eye candy factor. It’s about using them when they’re the perfect fit – showcasing comparisons,  percentage representations , or  market share visualizations . And yeah, sometimes it’s smarter to pass on the pie and reach for another  data presentation software  or tool that better suits your fancy data feast.

Whether it’s in a boardroom or a classroom, armed with a click and a drag, you can now make data do the tango in a  circular graph , and who wouldn’t want that? Just keep it simple, savvy, and always, always on point.

• Milan Jovanovic

Product Lead

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A pie chart is a pictorial representation of data in the form of a circular chart or pie where the slices of the pie show the size of the data. A list of numerical variables along with categorical variables is needed to represent data in the form of a pie chart. The arc length of each slice and consequently the area and central angle it forms in a pie chart is proportional to the quantity it represents.

What is Pie Chart?

A pie chart is a type of a chart that visually displays data in a circular graph. It is one of the most commonly used graphs to represent data using the attributes of circles , spheres , and angular data to represent real-world information. The shape of a pie chart is circular where the pie represents the whole data and the slice out of the pie represents the parts of the data and records it discretely.

Pie Chart Definition

A pie chart is a type of graph that records data in a circular manner that is further divided into sectors for representing the data of that particular part out of the whole part. Each of these sectors or slices represents the proportionate part of the whole. Pie charts, also commonly known as pie diagrams help in interpreting and representing the data more clearly. It is also used to compare the given data.

Pie Chart Example

Let us look at the following example of the following pie chart that represents the ingredients used to prepare a butter cake.

Example: The whole pie represents a value of 100. It is divided into 10 slices or sectors. The various colors represent the ingredients used to prepare the cake. What would be the exact quantity of each of the ingredients represented in specific colors in the following pie chart?

Solution: As we can see, the pie is divided into 10 slices or sectors. To calculate the exact amount of ingredients that are added to the cake, we divide the whole sector's value, i.e., 100 by the number of sectors. So, 100 ÷ 10 = 10. Hence, looking at the color divisions made in the pie chart we can conclude that:

Pie Chart Formula

We know that the total value of the pie is always 100%. It is also known that a circle subtends an angle of 360°. Hence, the total of all the data is equal to 360°. Based on these, there are two main formulas used in pie charts:

• To calculate the percentage of the given data, we use the formula: (Frequency ÷ Total Frequency) × 100
• To convert the data into degrees we use the formula: (Given Data ÷ Total value of Data) × 360°

We can work out the percentage for a given pie chart using the steps given below,

• Categorize the given data and calculate the total
• Divide the different categories
• Convert the data into percentages
• Calculate the degrees

Let us understand the above steps using an example.

Example: Observe the following pie chart that represents the money spent by Ana at the funfair. The indicated color shows the amount spent on each category. The total value of the data is 20 and the amount spent on each category is interpreted as follows:

• Ice Cream - 4
• Toffees - 4
• Popcorn - 2

To convert this into pie chart percentage, we apply the formula: (Frequency ÷ Total Frequency) × 100

Let us convert the above data into a percentage :

Amount spent on rides: (10/20)× 100 = 50%

Amount spent on toffees: (4/20)× 100 = 20%

Amount spent on popcorn: (2/20)× 100 = 10%

Amount spent on ice-cream: (4/20)× 100 = 20%

Observe the following pie chart that recommends a low-carb diet on a day.

We measure the angles of each slice. We get that Protein measures 180° , Carb measures 108°, and Fats measures 72°

To find the percentage, we divide each angle by 360 and multiply it by 100.

Protein = (180/360) × 100 = 50%

Carb = (108/360) × 100 = 30%

Fats = (72/360) × 100 = 20%

Uses of Pie Chart

Whenever some data has to be represented visually as a fractional part of a whole, we use pie charts. It is used to compare the data and see why one is smaller/greater than the other. Therefore, when we are dealing with a limited number of buckets and discrete data sets, it’s better to use a pie chart. Listed below are a few uses of a pie chart:

• In a business, it is used to compare the growth areas such as profit and loss.
• In school, pie charts are used to show the time allotted to each section, the grades of students in a form of percentages, etc.
• Pie charts are used in comparing the relative size of data of people owning the same vehicles, similar houses, etc.
• They are used to represent the marketing and sales data for the comparison of brands.

Steps to Construct Pie Chart

We use the following steps to construct a pie chart and using the above-mentioned formulas, we can calculate the data.

• Step 1: Write all the data into a table and add up all the values to get a total.
• Step 2: To find the values in the form of a percentage divide each value by the total and multiply by 100.
• Step 3: To find how many degrees for each pie sector we need, we take a full circle of 360° and use the formula: (Frequency/Total Frequency) × 360°
• Step 4: Once all the degrees for creating a pie chart are calculated, draw a circle (pie chart) using the calculated measurements with the help of a protractor.

Example: Construct a pie chart to visually display the favorite fruits of the students in a class based on the given data: Mango - 45; Orange - 30; Plum - 15; Pineapple - 30; Melon - 30

Step 1: Create a table with the values and get the total.

Step 2: Find the percentage of each value:

Mango = (45/150) × 100 = 30%

Orange = (30/150) × 100 = 20%

Plum = (15/150) × 100 = 10%

Pineapple = (30/150) × 100 = 20%

Melon = (30/150) × 100 = 20%

Step 3: Finding the degree of each pie sector using the formula: (Given data/Total Value of data) × 360°

With all the above degrees, with the help of a protractor draw a pie chart. Thus, the pie chart looks like this:

Interpreting Pie Chart

To read or interpret a pie chart, we see if the given chart is given in percentages or without any value. If it is given in percentages, the conversion is made accordingly and interpreted accordingly. Let us look at an example to understand this better.

Example: The pie chart shown below shows the percentages of types of transportation used by 500 students to come to school. With this given information, answer the following questions: a) How many students come to school by bicycle? b) How many students do not walk to school? c) How many students come to school by bus and car?

a) The students who come by bicycle = 25%; (25/100) × 500 = 25 × 5 = 125

b) The students who do not walk to school - We need to add the values of all the remaining means, i.e., bus + car + bicycle = 26 + 32 + 25 = 83

Hence, (83/100) × 500 = 83 × 5 = 415 students do not walk to school.

c) The students who come by bus and car [(32 + 26)/100] × 500 = 58 × 5 = 290

Pie Chart Advantages

Given below are the advantages to a pie chart which are the reasons for the widespread application of pie charts in different fields.

• A pie chart is a simple and easy-to-understand method to represent the data visually as a fractional part of a whole.
• It provides an effective communication tool visually simpler than other types of graphs.
• Pie chart helps in data comparison for the audience at a glance to give an immediate analysis or to quickly understand information due to widespread use in business and the media.

Pie Chart Disadvantages

There are few demerits in pie charts. These are as given below,

• A pie chart cannot show more than a few values without separating the visual encoding from the data they represent, that is they are not very effective when the number of values in a data set increases.
• It does not easily reveal exact values in the data set.
• To show the changes in the data, many pie charts may be needed. It, therefore, fails to explain the causes, effects, or patterns.

Related Topics:

Listed below are a few interesting topics that are related to the concept of a pie chart, take a look!

• Measurement

Pie Chart Examples

Example 1: The following chart shows the various activities done by Diana in a week.

a) Calculate the central angle subtended at sleeping.

b) Find the portion of time spent by Diana at school.

c) Find the central angle subtended in playing.

a) Time spent in sleeping = 34%; (34/100) × 360 = 122.4°. Therefore, the central angle subtended at sleeping = 122.4°

b) Time spent at school = 25%; 25/100 = 1/4. Therefore, she spends 1/4th of her time in school.

c) Time spent on playing = 8%; (8/100) × 360 = 28.8°. Therefore, the central angle subtended at playing = 28.8°

Example 2: The pie chart shows the favorite subjects of students in a class. Using the information given in the pie chart, find the percentage of students who chose English.

Let's first determine the percentage of students who chose English by looking at the pie chart.

We know that 144° + 36° + 72° + 108°= 360°

The percentage of students who chose English: (72/360) × 100 = 20

Therefore, the percentage of students who chose English = 20%

Example 3: A pie chart is divided into 3 parts with the angles measuring as x, 4x, and 5x respectively. Find the value of x in degrees.

We know, the sum of all angles in a pie chart would give 360º as result. ⇒ x + 4x + 5x = 360º ⇒ 10 x = 360º ⇒ x = 360º/10 ⇒ x = 36º Therefore, the value of x is 36º.

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Practice Questions on Pie Charts

Faqs on pie chart, what is a pie chart.

A pie chart is a circular graph that records data according to numbers, percentages, and degrees. The pie chart is divided into sectors for representing the data of a particular part out of the whole part according to the measurements. Pie charts also called pie diagrams, represent each sector or slice as the proportionate part of the whole. Some of the examples where we use pie charts are in businesses, schools, etc.

What are the Uses of a Pie Chart?

Pie charts are used to represent the proportional data in a single chart. The concept of pie slices is used to show the percentage of a particular data from the whole pie. Pie charts are used in businesses to measure the profit or loss of the company, used in schools to compare the percentages of scores of students, used in marketing and sales materials, and so on.

Should a Pie Chart be equal to 100?

Yes, the total value of the pie chart should be equal to 100. The slices of the pie chart are accordingly expressed as a percentage.

What is the Formula for Pie Chart?

The different formulas that can be used while representing a given data in form of pie charts are as given below,

• To calculate the percentage of the given data we use the formula: (Frequency ÷ Total Frequency) × 100

How do you Explain a Pie Chart?

To read or explain the information depicted in the form of a pie chart, we see if the given chart is given in percentages or without any value. If it is given in percentages, the conversion is made accordingly and the data can be interpreted accordingly.

How do you Work out Degrees for a Pie Chart?

To convert the data into degrees for a pie chart, we use the formula given below, (Given Data ÷ Total value of Data) × 360°.

How to Calculate the Percentage of Data in the Pie Chart?

To calculate the percentage of the given data in a pie chart, we can use the formula given below, (Frequency ÷ Total Frequency) × 100

How to Create a Pie Chart?

We use the following steps to construct a pie chart:

• Step 1: Add all the values to get the total quantity mentioned in the table.
• Step 2: To determine the percentages divide each value by the total and multiply it by 100.
• Step 3: To determine the degrees of each sector, use the formula: (Frequency/Total Frequency) × 360°
• Step 4: Once all the degrees for creating a pie circle are calculated, draw the circle (pie chart) using the calculated measurements with the help of a protractor.

How to Change Pie Chart Numbers to Percentage and Degree?

To calculate the numbers present in the pie chart, we can convert them into percentages and degrees. To convert a value into a pie chart percentage, we use the formula: (Frequency ÷ Total Frequency) × 100. To convert a value into degrees, we use the formula: (Given Data ÷ Total value of Data) × 360°

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Pie Charts: Visualizing Data Patterns and Insights

By   Bernadette Bautista

September 21, 2023

Have you ever struggled to understand complex data or make comparisons swiftly? Consider the humble pie chart, a powerful tool used by professionals worldwide for visualizing and interpreting patterns in data.

In this blog post, we’ll explore how pie charts can transform raw numbers into easily digestible insights , helping you make smarter decisions based on your findings. Read on to master the art of data visualization with pie charts!

Importance of Pie Charts in Data Visualization

Pie charts play a crucial role in visualizing data by allowing for easy comparison of proportions and providing an effective representation of categorical data .

Easy comparison of proportions

Pie charts help us to see the size of parts in a whole . They show data as percents . So, we can compare these parts easily. For example, think about running a race. A pie chart could show how many people fit into different age groups .

With this, you can tell at a quick look which group has the most or least runners .

Effective representation of categorical data

Pie charts are a helpful tool for effectively representing categorical data. They allow us to visually compare different categories and understand their proportions in relation to the whole.

This makes it easier for us to identify patterns and trends within the data. By using geometric shapes like slices of a pie , we can see at a glance which categories have larger or smaller percentages.

This helps in analyzing market share, composition chart information , research topics, share of votes for candidates, and many other dimensions of data analysis. Pie charts are one of the most commonly used data visualization technique s because they provide clear insights into patterns and help us interpret data more easily.

Clear visualization of trends and patterns

Pie charts provide a clear and easy way to visualize trends and patterns in data. By representing different categories as slices of a pie , it becomes visually apparent how each category contributes to the whole.

This allows for quick comparisons between proportions and helps identify any noticeable trends or patterns. The use of different colors also aids in better differentiation between categories, making it easier for viewers to understand the data at a glance.

Overall, pie charts are an effective tool for gaining insights into categorical data and understanding its composition.

Tips for Creating Effective Pie Charts

Limit the number of categories, ensure clear and accurate labeling , and use contrasting colors for better differentiation.

Limit the number of categories

To create an effective pie chart, it is important to limit the number of categories . Having too many categories can make the chart crowded and confusing for readers to interpret. It is recommended to use a maximum of five to seven categories in a pie chart for better clarity.

By keeping the number of categories limited, you can ensure that each slice represents a significant portion of the whole and allows for easier comparison between different data points .

This helps viewers quickly understand the proportions and trends within the data without getting overwhelmed by excessive details or small slices that may be difficult to differentiate.

Ensure clear and accurate labeling

To create effective pie charts, it is crucial to ensure clear and accurate labeling. Labeling helps viewers understand the information presented in the chart without confusion. Each category or slice in the pie chart should be clearly labeled with its corresponding value or percentage .

Using descriptive labels makes it easier for the audience to interpret the data accurately. Additionally, using contrasting colors for each slice can help differentiate between them more effectively.

Clear and accurate labeling enhances the overall readability of a pie chart and enables viewers to grasp key insights and patterns quickly.

Use contrasting colors for better differentiation

To create effective pie charts , it is important to use contrasting colors for better differentiation . By using colors that are visually distinct from one another, you can make it easier for viewers to understand and distinguish the different categories or slices in the chart.

This helps in clear visualization of data patterns and makes it simpler to compare proportions . Using contrasting colors also enhances the overall visual appeal of the chart, making it more engaging and easy to interpret at a glance.

Common Mistakes to Avoid in Pie Chart Design

Designing a pie chart with too many categories or small slices can make it difficult to interpret the data accurately. Avoid making these mistakes and learn other common pitfalls in pie chart design for effective data visualization.

Read more to enhance your understanding of pie charts and their role in visualizing data patterns and insights.

Using too many categories or small slices

Using too many categories or small slices in a pie chart can make it difficult to understand the data . It can lead to overcrowding and confusion , making it hard to distinguish between different sections.

Limiting the number of categories helps simplify the chart and improve its readability. Similarly, having small slices can be challenging to interpret accurately , especially when they represent smaller proportions of the whole.

To ensure clarity, it is important to group similar categories together or consider combining smaller slices into one larger slice that represents an “other” category. By avoiding these mistakes, you can create a more effective and useful pie chart for visualizing your data patterns and insights without overwhelming your audience with unnecessary information.

Misrepresenting data with misleading visuals

Misrepresenting data with misleading visuals is a common mistake when designing pie charts. This happens when the chart does not accurately represent the proportions or percentages being depicted.

For example, if the slices in the chart are not sized correctly according to their values, it can give a false impression of the data. Another way data can be misrepresented is by using colors that are too similar, making it difficult to differentiate between categories .

It’s important to ensure that pie charts are designed accurately and clearly so that viewers can easily understand and interpret the information being presented.

Failing to provide context or additional information

Failing to provide context or additional information in a pie chart can make it difficult for viewers to fully understand and interpret the data. Without clear labels, explanations, or a key, it becomes challenging to grasp the meaning behind each slice of the chart.

Providing context helps viewers understand what each category represents and how it relates to the whole. Additional information such as percentages or values for each slice can also enhance understanding and aid in accurate interpretation.

Without these elements, pie charts may lose their effectiveness in conveying meaningful insights from the data.

In conclusion, pie charts are valuable tools for visualizing data patterns and gaining insights. They allow for easy comparison of proportions and effectively represent categorical data .

By following some simple tips and avoiding common mistakes in their design, pie charts can provide a clear visualization of trends and patterns in data analysis . So next time you have to present data, consider using a pie chart to showcase your findings !

1. What is a Pie Chart?

A pie chart is a type of graph used for showing data patterns and insights.

2. How does the pie chart help in visualizing data?

The pie chart gives an easy-to-understand picture of the parts that make up the whole.

3. Can tree maps be used instead of pie charts to show data?

Yes, tree maps are another way to represent data just like graphs and pie charts.

4. What is better – graphs or pie charts for showing information?

Both have their place. Graphs show changes over time while Pie Charts give a clear view of parts of a whole at one point in time.

Bernadette Bautista

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• Data Visualization 101: Best Practices for Pie Charts and Bar Graphs

• January 26, 2017
• Analytics and Reporting

As business people and marketers, we traffic in data. It’s what we use to make decisions (even gut decisions). Data is also how we communicate the status of things and how we make the case for change.

As logical, results-oriented business folk, we like to be data-based.

This principle is so prevalent now that it shows up in a number of disciplines. There’s data-driven marketing. Data storytelling. It all ties nicely into the trend of visual content, too.

Yup – all our charts and graphs are a type of visual content. We even have a nice word to blend data and visual content: “data visualization,” aka, “data viz.”

Given how powerful and ubiquitous data visualization is, wouldn’t you like to be better at it? Want to pick up a couple of tips on how to make a pie chart or graph more convincing?

If so, keep reading. These proven best practices will help. To keep things short, I’ve limited my suggestions to the two most commonly used data viz devices: pie charts and bar graphs.

Beware of pie charts

Didn’t know they were troublemakers, right? But quite a few data visualization experts are intensely opposed to pie charts. Walter Hickey opens his blog post, “The Worst Chart In The World” with this sentence: “The pie chart is easily the worst way to convey information ever developed in the history of data visualization.”

Even Edward Tufte, possibly the most respected voice in data viz, says “pie charts are bad and the only thing worse than one pie chart is lots of them.”

So why are they so awful?

Basically, it’s because they’re hard to read. They’re hard to read because our brains aren’t great at interpreting the relevant size of different slices of the pie. If the sections of the chart are similar, we can’t easily tell which piece is bigger.

If you’ve got only two or three slices of the pie, and all those slices are very different, then you don’t have much of a problem. But that’s not the case with most pie charts. All too often, we try to squeeze too much data into them – not only do we end up with lots of slices, we get too many similarly sized slices. That’s when it becomes hard to tell the difference between, say, a slice that’s 23% of the pie versus a slice that’s 28%.

So, is this really such a big deal? Are pie charts really warping our perception so badly?

Well, consider this row of pie charts. They’re supposed to illustrate changes over time:

Now compare those pie charts to these bar graphs. They show the same information, but the bar graphs let us see much more precisely both the changes and how big the different categories

How to make pie charts look better

Yeah… so pie charts have issues. But I’m guessing you’re still going to have to use them from time to time, whether it’s because your boss said so, or because it’s difficult to depict your information any other way.

So, if you must use a pie chart, try to abide by these rules:

1. Don’t use more than five sections.

Too many skinny slices are hard to read. They cloud the information as much as they reveal it.

So, do this:

2. Place the largest slices from “12” at the top (like on a clock) and work your way around the circle.

3. Avoid comparing one pie chart to another.

Remember that example above, with the three pie charts showing changes over time? That’s not a good time to use pie charts. Because even one pie is hard to read, lining up a row of them for people to compare makes things even worse. If you want to compare two sets of data like that, use a stacked bar chart like this:

4. Don’t use 3-D pie charts.

They make some slices of the pie seem larger than others. This makes the chart even harder to read, and possibly downright deceptive.

In the example above , the purple slice looks larger than the dark blue slice in the back, but maybe they’re the same size, due to the foreshortening of the blue slice. The angles are hard to measure, too.

I don’t advise this (of course), but if you wanted to manipulate information – to deliberately make that dark blue slice look smaller than the purple slice ‒ a 3D chart could do that well.

When to Use a Pie Chart

Before you swear off pie charts forever, know this: There is an exception to the no-pie chart rule. Really. The data viz experts say so. When you’ve got 2-3 data points that are significantly different, then it’s fine. You can have your pie at that time. This is the one instance when pie charts are helpful ‒ they’re good at showing people what a fraction of something looks like.

For example, this is a reasonable use of a pie chart:

Common mistakes with bar graphs

After pie charts, the next most common chart we see in business is the bar graph. These are not as reviled as the poor pie chart, but they’re associated with some frequently made mistakes. Here are the worst offenders:

1. Sideways labels.

Here’s what they look like :

Fortunately, this is an easy fix. Just switch the information on the axis so the long labels can be read horizontally.

2. Data points aren’t ranked by size.

The charts right above don’t break this rule. In both the vertical and horizontal examples, the bars that are longest are up top, and they descend orderly to the shortest bar.

This lends a sense of visual consistency, but more importantly, it makes it much easier to understand how the measurements compare.

A graph like this breaks the rule.

It makes the viewer have to guess or squint to see how often the different excuses are made.

Of course, if you’re using a bar graph to show changes over time, then you should prioritize the time increments and put them in order, rather than forcing the bar lengths to line up.

3. Avoid shadows or 3D elements on your graph.

It just distracts from the information. Keep the imagery of any data visualization as simple as humanly possible. You want the star of your information to be the information itself – not anything else.

While I adore Social Media Examiner’s annual industry report , I wish they wouldn’t make their graphs 3D.

This is a small mistake, but it makes every data viz experts’ list of no-nos. Those lines behind the bars on a bar graph? They should go. They’re only cluttering up your graph.

So do this:

Instead of this:

The clearer we can communicate our message, the more likely we are to be heard. Pie charts and line graphs can do that ‒ but only in specific circumstances, and only if they’re depicted in a straightforward and clean way. These charts distill a lot of information, but the simpler they appear, the more impactful they become.

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Pie Chart is a pictorial representation of the data. It uses a circle to represent the data and is hence also called a Circle Graph. In a Pie Chart, we present the data by dividing the whole circle into smaller slices or sectors, and each slice or sector represents specific data.

In this article, we will learn about Pie Charts, Steps to Create Pie Charts, Examples, and Others in detail. The image added below shows a pie chart.

What is Pie Chart?

A pie chart is a pictorial or graphical representation of data in chart format. A pie chart uses a circle or sphere to represent the data, where the circle represents the entire data, and the slices represent the data in parts.

Pie chart is one of the easiest ways to present and understand the given data, and pie charts are used very commonly. For example, pie charts are used in excel very often.

Pie Chart Definition

There are different ways of data representation . A pie chart is one of the types of charts in which the data is represented in a circular shape. The pie chart circle is further divided into multiple sectors/slices; those sectors show the different parts of the data from the whole.

Pie charts, also known as circle graphs or pie diagrams, are very useful in representing and interpreting data. The data can be compared easily with the help of a pie chart. Below is an example of a pie chart explained in detail.

Types of Pie Chart

There are various variation or types of pie chart, some of the common types include:

• 3D Pie Chart: A 3D pie chart adds depth to the traditional two-dimensional pie chart by rendering it in three dimensions.
• Doughnut Chart: A doughnut chart is similar to a pie chart but with a hole in the center.
• Exploded Pie Chart: In an exploded pie chart, one or more slices are separated from the rest of the pie to emphasize their importance or to make them stand out.
• Nested Pie Chart: Also known as a multi-level pie chart or hierarchical pie chart, this type of chart consists of multiple rings of pie charts, with each ring representing a different level of data hierarchy.
• Ring Chart: A ring chart is similar to a doughnut chart but consists of multiple rings instead of just one. Each ring represents a different category of data, with the size of each segment within the ring corresponding to its proportion of the whole.

Pie Chart Examples

Let’s take a look at an example for a better understanding of pie charts. In a class of 200 students, a survey was done to collect each student’s favorite sports. The pie chart of the data is given below:

Since the pie chart is provided and the total number of students is given, we can easily take the original data out for each sport. 

• Cricket = 17/100 × 200 = 34 students
• Football = 25/100 × 200 = 50 students
• Badminton = 12/100 × 200 = 24 students
• Hockey = 5/100 × 200 = 10 students
• Other = 41/100 × 200 = 82 students

The original data for the pie chart shown above is given below:

Pie Chart Formula

The total value or percentage of the pie is 100% always. Here it contains different sectors and segments in which each sector or segment of the chart corresponds to a certain portion of the net or total percentage (or data). The total or sum of all the data can be summed up to 360 degrees.

• Converting the data into degrees on a pie chart. The formula for a pie chart can be summed up as:

(Given Data / Total Value of Data) × 360°

• Calculating the percentage of each sector from degrees in a pie chart.

To work out with degrees in a pie chart, we need to follow the following steps:

• First, we need to measure every slice of the chart.
• Then we need to divide it by 360°.
• Finally, multiply the obtained result by 100.

The pi chart formula is given below:

(Frequency)/(Total Frequency) × 100

Calculating Number of Sectors on a Pie Chart

To calculate the total number of slices or sectors on a pie chart, we need to multiply the sector’s percentage by the total value of the data and finally divide the result by 100.

How to Make Pie Chart

We will learn how to create a pie chart step by step with the help of an example. A teacher surveyed a group of students to see what is their favorite hobby of each student. Let’s take a look at the pie chart example with an explanation. The data collected is listed as follows:

Now we will see how to construct a pie chart step by step.

Step 1: The first step requires us to write down the available data in tabular form as follows:

Step 2: Now find the sum of all the given data. Here, the Sum of All Data = (16 + 20 + 10 + 30 + 24) = 100

Step 3: Now, calculate the percentage of each sector. We need to divide each sector value by the sum or total and then multiply it by 100.

Step 4: Next step is to calculate the degrees corresponding to each slice. The values can be calculated as:

Central Angle of Each Component = (Given Data / Total Value of Data) × 360

Hence, The values are as follows:

Step 5: Now, with the help of a protractor, we will measure each angle from a single point or central point and draw the circle’s sectors. The resultant pie chart will be:

How to Read Pie Chart

In order to read a pie chart, the first thing to notice is the data presented in the pie chart. If the data is given in percentage, it should be converted accordingly in order to analyze and interpret the data. Let’s take a look at an example in order to learn how to interpret pie charts.

Example: In a survey done among 300 people, it was observed which type of genre each person prefers. The pie chart of the same is mentioned below. Analyze and interpret the pie chart accordingly to find the original data.

While observing the pie chart, it came to notice that the data is present in percentage. Lets convert the data to obtain the original value. Number of people who like comedy = 20/100 × 300 = 60 people. Number of people who like action = 25/100 × 300 = 75 people. Number of people who like romance = 30/100 × 300 = 90 people. Number of people who like drama = 5/100 × 300 = 15 people. Number of people who like sci-fi = 20/100 × 300 = 60 people.

Pie Chart Vs Bar Graph

The key difference between pie chart and bar graph are listed in the following table:

Pie Chart Advantages

Pie Chart is very useful for finding and representing data. Various advantages of the pie chart are,

• Pie chart is easily understood and comprehended.
• Visual representation of data in a pie chart is done as a fractional part of a whole.
• Pie chart provides an effective mode of communication to all types of audiences.
• Pie chart provides a better comparison of data for the audience.

Pie Chart Disadvantages

There are some disadvantages also of using pie charts and some of them are added below,

• In the case of too much data, this presentation becomes less effective using a pie chart.
• For multiple data sets, we need a series to compare them.
• For analyzing and Assimilating the data in a pie chart, it is difficult for readers to comprehend.

Uses of Pie Chart

Whenever a fraction or fractions are represented as a part of the whole, pie charts are used. Pie charts are used to compare the data and to analyze which data is bigger or smaller. Hence, while dealing with discrete data, pie charts are preferred. Let’s take a look at the uses of the pie chart:

• Pie charts are used to compare the profit and loss in businesses.
• In schools, the grades can be easily compared using a pie chart.
• The relative sizes of data can be compared using a pie chart.
• The marketing and sales data can be compared using a pie chart.

Measurement of Angles Bar Graph and Histogram

Example 1: The given pie chart shows the subject of interest of each student in a class.

Answer the following question concerning the given pie diagram.

• If 30 students’ subjects of interest are history, how many total students were surveyed?
• Which subject is liked the most?
• Which subject is disliked the most?

1. According to the given question, 8% of the total number of students is 30. i.e. (8/100) x Total = 30 Therefore, Total = 30 x (100/8) = 375 Hence 375 students were surveyed. 2. According to the given pie chart, science is liked the most. 3. According to the given pie chart, history is disliked the most.

Example 2: For a science camp, students from different states have enrolled. Construct a pie chart for the given table:

Step 1: The first step requires us to jot down the available data into tabular form as follows: West Bengal Assam Tamil Nadu Gujarat Karnataka 10 5 5 10 10 Step 2: The next task is to calculate the sum of all the given data. Here, the Sum of All Data = (10 + 5 + 5 + 10 + 10) = 40 Step 3: Now, the next task is to calculate the percentage of each sector. We need to divide each sector value by the sum or total and then multiply it by 100. West Bengal Assam Tamil Nadu Gujarat Karnataka (10/40) × 100 = 25% (5/40) × 100 = 12.5% (5/40) × 100 = 12.5% (10/40) × 100 = 25% (10/40) × 100 = 25% Step 4: Next step is to calculate the degrees corresponding to each slice. The values can be calculated as: West Bengal Assam Tamil Nadu Gujarat Karnataka (10/40) × 360 = 90 (5/40) × 360 = 45 (5/40) × 360 = 45 (10/40) × 360 = 90 (10/40) × 360 = 90 Step 5: Now, with a protractor’s help, we will measure each angle from a single point or central point and draw the circle’s sectors. The resultant pie chart will be:

Example 3: A pie chart is divided into four parts, and the values are given as x, 3x, 4x, and 4x. Find the value of x in degrees.

As it is known that a pie chart has 360°. Therefore, if all the angles are added, it will give 360°. x + 3x + 4x + 4x = 360° 12x = 360° x = 30°

Practice Questions on Pie Charts

Q1. Students selected for ISRO visit from various states are given in the table below. Represent them in a pie chart.

Q2. Marks scored by Kabir in an exam in various subject is shown in the table below show a pie chart representing the same.

FAQs on Pie Chart

Define pie chart..

Pie chart is the visual representation in which a circle graph is used to represent the values according to numbers, percentages, and degrees.

What is the Formula for Pie Chart?

To calculate the percentage of the given data, the formula used: (Frequency ÷ Total Frequency) × 100 Converting data into degrees: (Given Data ÷ Total Data) × 100

What are Examples of Pie Chart?

There are many examples of pie chart as pie chart is often used for visual representation. Following are some of the real-life examples: Representation of marks obtained by students. The marketing and sales data is obtained by using a pie chart. The profit and loss endured by a business can be represented by a pie chart.

What i s Polpulation Pie chart?

The population pie chart is the pie chart that represent the population of any area and the population pie chart of the world is shown in the image added below,

What are the Uses of Pie Graph?

Pie charts are used for various purposes and various uses of pie chart are, It is used to represent various types of data. It is used to show data of various demographics. It is used to represent various objects of sales, marketing, and others, etc.

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• Insert a pie chart Video
• Customize a pie chart Video
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Insert a pie chart

Quickly add a pie chart to your presentation, and see how to arrange the data to get the result you want. Customize chart elements, apply a chart style and colors, and insert a linked Excel chart.

Add a pie chart to a presentation in PowerPoint

Use a pie chart to show the size of each item in a data series, proportional to the sum of the items. When you need a pie chart in a presentation, use PowerPoint to create it or, if you prefer, create the chart in Excel, and copy it into PowerPoint (see Copy an Excel chart to another Office program ). Here’s how:

Click INSERT > Chart .

Click the chart type, and then double-click the chart you want. For help deciding which chart is best for your data, see Available chart types .

In the spreadsheet that appears, replace the default data with your own information.

When you have finished, close the spreadsheet.

Change the format of data labels in a chart

Copy an Excel chart to another Office program

Use a pie chart to show the size of each item in a data series, proportional to the sum of the items.

In this pie chart, the data series consists of Sales Order Amounts.

Each Salesperson’s total is shown as a percentage of Total Orders.

The categories for the data are the Salespeople themselves, and the legend shows their Names, color-coded to their slices in the pie.

PowerPoint has great charting tools for creating a pie chart, which typically shows simple, straightforward data.

If, however, you prefer creating charts in Excel, create the pie chart there, and copy it into PowerPoint, keeping a link to the original, if you want.

We cover this in Movie 3: Insert a linked Excel pie chart.

To create a pie chart in PowerPoint, on the HOME tab, click the arrow next to New Slide , and Blank to insert a blank slide.

Then click INSERT , Chart , and choose Pie .

The default chart is a standard pie chart. I’ll point to it for a larger preview.

That’s what I want, so I’ll click OK .

The chart is inserted, and a small window, with placeholder data, appears. We’ll type our data here.

So, we can see the chart better. I’ll resize the window by pointing to an edge and dragging the two-headed arrow cursor.

We’ll start by typing the Names of the Salespeople, which go in the category column, where Quarters appear by default.

I’ll click the first cell and type: Briggs, then Dyer, Rose, and all the names. Then, I press Enter.

The Names appear as the legend in the chart.

We’ll type our data, the individual Order Amounts, in the next column.

To start, let’s change the heading to Order Amounts, and press Enter.

To make the B column look right in the data window, I’ll point to its edge and double-click.

That widens the cell to fit the heading.

Note that, in the chart, the title reflects the new heading.

Next, we’ll type in the Sales data, which determines how the pie is divided.

For Briggs, I’ll type the Order Amount, and press Enter.

Then I do the same with the others. For Dyer, it’s 1963. The chart updates as I add data.

I have typed in the Order Amount for each Salesperson, and the pie is divided accordingly.

Since I am finished adding data, I’ll click X to close the data window.

Up next: Customize a pie chart .

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Create a Pie Chart Graphic in PowerPoint

Pie charts show proportions of the whole

• Brock University

In This Article

Jump to a Section

• Create a Pie Chart
• Choose a Style

The Generic Pie Chart and Data

• Edit the Data
• The Updated Pie Chart

Create a pie chart in PowerPoint to visually demonstrate proportions of a whole. After you've created the basic chart, adjust the chart's data, alter its style, and update it on the fly.

Information in this article applies to PowerPoint 2019, 2016, and 2013; PowerPoint for Microsoft 365; and PowerPoint for Mac.

Create a Pie Chart in PowerPoint

Begin by adding a new slide  using the  Title and Content  slide layout. Then, select the  Insert Chart  icon (it's the middle icon on the top row of the group of six icons shown in the body of the slide layout).

Another way to add a pie chart is to choose a blank slide in your presentation and select Insert  >  Chart .

Choose a Pie Chart Style

In the Insert Chart dialog box, select Pie and choose a pie chart style. There are several style of pie charts. Options include flat pie shapes, 3D pie shapes, and pie charts with  exploded pieces . Select OK  after you have made your selection.

The pie chart styles and colors can be changed after the chart is created.

When you create a pie chart on a PowerPoint slide, the basic chart appears on the slide and the chart data appears in a worksheet window.

If you don't see the worksheet window, select the chart and select Chart Tools Design > Edit Data .

You'll use the worksheet window to enter data for the pie chart by replacing the default data.

Edit the Pie Chart Data

Pie charts display comparative types of data, such as percentage figures for how much each of your monthly household expenses takes from your income. However, pie charts display one type of data, unlike column charts or line charts.

To edit the data in the worksheet window:

Select the worksheet window to make it the active window.

Edit the heading of the  column  in the generic data to reflect your own information.

Edit the row headings in the generic data to reflect your own information. The chart updates to reflect your changes.

To add new data rows, drag a corner handle of the highlighted data set.

Updated Pie Chart Reflects New Data

After you change the generic data to your own specific data, the information is immediately reflected in the pie chart. Add a title for your slide into the text  placeholder  at the top of the slide.

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Data Visualization: Better Than Pie Charts

• PowerPoint Tutorials
• Charts & Data Viz
• Presentation Design
• June 23, 2016

I hate pie charts.

They are ugly, over used and often stuffed so full of data that you can’t make any sense out of them.

That’s why in this tutorial, I’m going to show a data visualization technique that is better than using pie charts for getting your point across.

Research has shown that the single best indicator of success – for any profession – is how often you are asked to deliver presentations.

And the best way to get more invitations to present, is to make the presentations you do give REALLY good.

Before learning these better than pie chart tricks, don’t forget to ask yourself the all important presentation question before you start building your slide.

What’s the point?!

• Why did I go to all of the effort to pull this information together?
• What do I want someone to understand by seeing this information?
• What do I hope someone thinks after I present it to them?

Your slide’s job is to back you up, and to do that it needs to have a point. This is so obvious, so simple and yet so  OVERLOOKED !

With that said, let’s dive right in.

And right off the bat, I have to admit that pie charts are my least favorite chart type (by far), but let’s assume for this first episode, that we  HAVE  to use a pie chart. We aren’t given a choice (it happens).Enter your text here…

What type of chart should I use instead of a pie chart?

I typically prefer column and bar charts, and I explain why in  Episode #2 – The Pie Chart Secret Ingredient , as adding it all but forces you to get to a point with your slide.

So, if you are ever stuck with a pie chart, there are two bulletproof rules you can use to help you get to your point,  the Rule of Two’s  and  Going Doughnut .

Pie Chart Rule #1: The Rule Of Two’s

The Rule of Two’s is super simple. It means that when given a pie chart, you’re only allowed to format two pieces of data. That’s it, only two, which forces you to be crystal clear in what you want to talk about.

Step #1:  Format the one specific data point in your pie chart that you want to talk about.

Step #2:  Combine all of the other categories into a single category.

Step #3:  Add a title describing your highlighted portion.

For example, taking the original pie chart we started with on the left, using the Rule of Two’s I might end up with the slide on the right.

And right off the bat, notice how much clearer your message becomes for both you and your audience.

If you put up the original pie chart on the left, even you as the presenter might not remember what exactly you wanted to say about it. On the flip side, if you put up the pie chart on the right, you better start talking about the 45% that you highlighted as there is really nothing else to talk about.

It’s still might not be a super clear point (it’s merely a fact) but it’s now something you can use to back up what your are talking about.

Pie Formatting Trick – Changing the Angle of Your First Slide

I once read somewhere that it’s best to have the highlighted portion of your pie chart in the lower right-hand corner of your chart.

That means that depending on which data point you highlight in your pie chart with the Rule of Two’s, you might need to adjust the angle of your first slice. To do that, just follow these two steps.

Step #1: Open the Format Data Point Dialog Box

Click within your pie chart and hit the CTRL+1 shortcut on your keyboard to open up the formatting dialog box (see this charting shortcut explained below).

Within the dialog box that opens up, notice that you have an input box for ‘Angle of first slice’.

Step #2: Adjust the Angle of First Slice

Simply adjust the angle setting to move that piece of your pie chart around in your graphic. Below are some examples of different angles.

Pie Chart Rule #1: Slight Variation

Often times your pie chart will start with so many slices that coloring just one piece isn’t very helpful. In these cases, it’s good to use the Rule of Two’s to also consolidate the data points that you want to highlight.

For example, in the graphic below I’ve colored in black 3 different categories of traffic that can all be consolidated under the broader umbrella of organic traffic that I want to highlight.

After identifying which pieces can be grouped together, again using the Rule of Two’s you can group them together in Excel. For the data set above, that would result in the graphic below, showing that 70% of all traffic is coming from organic sources.

And you can do the same thing with whatever data set you are using.

Again, notice how if this was your graphic, you couldn’t help  BUT  talk about that 70% when you got to this slide.

That’s the beauty of using the Rules of Two’s. It gets you talking about one specific thing which as you’ll see in the next Episode, helps open up a whole can of worms (the good kind) for your presentation.

But before we get there, let’s also talk about Going Doughnut.

Pie Chart Rule #2: Going Doughnut

Do you agree the same chart on the right looks better than the one on the left?

The beauty is, you don’t have to recreate anything either. PowerPoint allows you to flip between your charts, so this is a quick fix to make.

Step #1: Change Chart Type

Select your pie chart and navigate to the Chart Tools Design tab and then select Change Chart Type to open up the Change Chart Type dialog box.

Depending on your version of PowerPoint, the Change Chart Type icon might be in a different place in your Ribbon.

With the Change Chart Type dialog box open, select the doughnut chart type.

Step #2: Add Your Statistic to the Center

Once you have your doughnut chart, next you will want to remove the data labels in the chart and add your own directly in the center.

To do that, just insert a shape or text box and in the center of the doughnut, and type in your figure (70% in this case). If you are using a rectangle, you will also want to remove the shape fill and the shape outline as shown below.

The Beauty Of These 2 Rules

The beauty of these two simple rules is they help you drill down to a specific data point you can use to back up your presentation. The result is an info graphic like visual that starts directing the message of your slide.

You can even use these rules to develop your point, even if you don’t originally know what it is.

For example, if the below was your original pie chart and you had  NO IDEA  what to do with the data…

That gives you some flexibility to talk about the 3 cornerstones of your organic traffic strategy, and to add a highlight or two about each piece.

It’s still not as good as what we do in  Episode #2 – The Pie Chart Secret Ingredient , but it’s the first step to getting to a point with your pie chart.

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Pie Chart Infographics

Free google slides theme, powerpoint template, and canva presentation template.

Pie charts are powerful visual tools, and you can use them to represent and compare percentages or proportions. They are useful when presenting data about your company, when describing your buyer persona, or even for medical or educational topics. They look like pies or even donuts, and each element represents a slice. Yummy!

Features of these infographics

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• Include information about how to edit and customize your infographics

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• Math Article

A pie chart is a type of graph that represents the data in the circular graph. The slices of pie show the relative size of the data, and it is a type of pictorial representation of data . A pie chart requires a list of categorical variables and numerical variables. Here, the term “pie” represents the whole, and the “slices” represent the parts of the whole. 

What is a Pie Chart?

The “ pie chart” is also known as a “circle chart”, dividing the circular statistical graphic into sectors or sections to illustrate the numerical problems. Each sector denotes a proportionate part of the whole. To find out the composition of something, Pie-chart works the best at that time. In most cases, pie charts replace other graphs like the bar graph, line plots, histograms, etc .

The pie chart is an important type of data representation. It contains different segments and sectors in which each segment and sector of a pie chart forms a specific portion of the total(percentage). The sum of all the data is equal to 360°.

The total value of the pie is always 100%.

To work out with the percentage for a pie chart, follow the steps given below:

• Categorize the data
• Calculate the total
• Divide the categories
• Convert into percentages
• Finally, calculate the degrees

Therefore, the pie chart formula is given as

(Given Data/Total value of Data) × 360°

Note: It is not mandatory to convert the given data into percentages until it is specified. We can directly calculate the degrees for given data values and draw the pie chart accordingly.

How to Create a Pie Chart?

Imagine a teacher surveys her class on the basis of favourite Sports of students:

The data above can be represented by a pie chart as following and by using the circle graph formula, i.e. the pie chart formula given below. It makes the size of the portion easy to understand.

Step 1 : First, Enter the data into the table.

Step 2 : Add all the values in the table to get the total.

I.e. Total students are 40 in this case.

Step 3 : Next, divide each value by the total and multiply by 100 to get a per cent:

Step 4 : Next to know how many degrees for each “pie sector” we need, we will take a full circle of 360° and follow the calculations below:

The central angle of each component = (Value of each component/sum of values of all the components)✕360°

Now you can draw a pie chart.

Step 5 : Draw a circle and use the protractor to measure the degree of each sector.

Let us take an example for a pie chart with an explanation here to understand the concept in a better way.

Question: The percentages of various cops cultivated in a village of particular distinct are given in the following table.

Represent this information using a pie-chart.

The central angle = (component value/100) × 360°

The central angle for each category is calculated as follows

Now, the pie-chart can be constructed by using the given data.

Steps to construct:

Step 1: Draw the circle of an appropriate radius.

Step 2: Draw a vertical radius anywhere inside the circle.

Step 3: Choose the largest central angle. Construct a sector of a central angle, whose one radius coincides with the radius drawn in step 2, and the other radius is in the clockwise direction to the vertical radius.

Step 4: Construct other sectors representing other values in the clockwise direction in descending order of magnitudes of their central angles.

Step 5: Shade the sectors obtained by different colours and label them as shown in the figure below.

Pie Chart Maker

Till now you understood how to draw a pie chart for the given data using geometric tools. In this section, you will know how to make the pie chart using an online tool. People often use a graphing feature in excel sheets to get the desired pie chart. However, we have provided an online pie chart maker.

Click here to get the pie chart calculator .

How to Solve Pie Chart Questions?

In this section, you will learn how to solve or interpret the pie chart to get the original values. For this, we need to check whether the given chart is given in percentages, degrees or without any value. Based on this information, we can solve the questions related to pie charts. Let’s have a look at the solved example to understand this thoroughly.

The pie-chart shows the marks obtained by a student in an examination. If the student secures 440 marks in all, calculate the marks in each of the given subjects.

The given pie chart shows the marks obtained in the form of degrees.

Given, total marks obtained = 440

i.e. 360 degrees = 440 marks

Now, we can calculate the marks obtained in each subject as follows.

Marks secured in mathematics = (central angle of maths/ 360°) × Total score secured

= (108°/ 360°) × 440 = 132 marks

 Marks secured in science = (central angle of science / 360°) × Total score secured

= (81°/ 360°) × 440 = 99 marks

Marks secured in English = (central angle of English/ 360°) × Total score secured

= (72°/ 360°) × 440 = 88 marks

Marks secured in Hindi = (central angle of Hindi / 360°) × Total score secured

= (54°/ 360°) × 440 = 66 marks

Marks secured in social science = (central angle of social science / 360°) × Total score secured

= (45°/ 360°) × 440 = 55 marks

This can be tabulated as:

A pie chart can be used to represent the relative size of a variety of data such as:

• The type of houses (1bhk, 2bhk, 3bhk, etc.) people have
• Types of 2 wheelers or 4 wheelers people have
• Number of customers a retail market has in all weekdays
• Weights of students in a class
• Types of cuisine liked by different people in an event
• Monthly expenditure of a family, etc.

Uses of Pie Chart

• Within a business, it is used to compare areas of growth, such as turnover, profit and exposure.
• To represent categorical data.
• To show the performance of a student in a test, etc.

Also, check some important topics here:

• The picture is simple and easy-to-understand
• Data can be represented visually as a fractional part of a whole
• It helps in providing an effective communication tool for the even uninformed audience
• Provides a data comparison for the audience at a glance to give an immediate analysis or to quickly understand information
• No need for readers to examine or measure underlying numbers themselves, which can be removed by using this chart
• To emphasize a few points you want to make, you can manipulate pieces of data in the pie chart

Disadvantages

• It becomes less effective if there are too many pieces of data to use
• If there are too many pieces of data. Even if you add data labels and numbers may not help here, they themselves may become crowded and hard to read
• As this chart only represents one data set, you need a series to compare multiple sets
• This may make it more difficult for readers when it comes to analyze and assimilate information quickly

You can practice another pie chart question for Class 8, given below:

Practice Problem

Question: Priya lists down her monthly expenditure as follows:

Draw a pie chart for her monthly expenses.

Frequently Asked Questions – FAQs

What is a pie chart, why do we use pie charts, how to calculate the percentage of data in the pie chart, how to find the total number of pieces of data in a slice of a pie chart, what are the examples of a pie chart.

Put your understanding of this concept to test by answering a few MCQs. Click ‘Start Quiz’ to begin!

Select the correct answer and click on the “Finish” button Check your score and answers at the end of the quiz

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very helpful example.

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Wow one of the clearest online math examples

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How to Make Pie Chart in PowerPoint

Pie charts are one of the most commonly used types of visuals in PowerPoint presentations. These circular diagrams are divided into slices, with each slice representing a different category of data. In this article, we will cover everything you need to know about creating effective pie charts in PowerPoint, from understanding the anatomy of a pie chart to customizing graphic elements. Whether you are a student, teacher, or business professional, this guide will help you create professional-looking presentations that effectively communicate data.

Table of Contents

Why Use Pie Charts in Your Presentations

Pie charts are an excellent way to represent data that is divided into categories. They are easy to read at a glance and provide a quick overview of the data. Pie charts are ideal for showing the relationship between different categories in a data set and are particularly useful for illustrating percentages. They are also visually appealing and can help to add interest to your presentations.

In addition, pie charts can be interactive, allowing viewers to hover over each slice to see the exact percentage or value represented. This can be especially useful in online presentations or reports. Furthermore, pie charts can be customized with different colors and labels to make them more visually appealing and easier to understand. Overall, using pie charts in your presentations can help to effectively communicate complex data in a clear and engaging way.

Types of Data Suitable for Pie Charts

Pie charts are best suited for data that is divided into categories. Examples of data that can be represented using pie charts include demographic data, market share data, and survey data. Data that is continuous or related to time can be more effectively displayed using line graphs or stacked column graphs.

Another type of data that can be effectively displayed using pie charts is budget data. Pie charts can be used to show the percentage of a budget that is allocated to different categories such as salaries, supplies, and equipment. This can help organizations to make informed decisions about where to allocate their resources.

Additionally, pie charts can be used to display data related to proportions or percentages. For example, a pie chart can be used to show the percentage of students in a school who participate in different extracurricular activities. This can help school administrators to identify which activities are most popular and make decisions about how to allocate resources for those activities.

Understanding the Anatomy of a Pie Chart

A pie chart is made up of slices that represent different categories. The size of each slice is determined by the proportion of data it represents. The slices are arranged in a circle, with each slice having a different color to aid in identifying the different categories. A title and labels are typically added to the chart to provide additional information about the data being presented.

It is important to note that pie charts are best used when comparing parts of a whole, rather than comparing individual data points. They are also not recommended for displaying large amounts of data, as too many slices can make the chart difficult to read. In addition, it is important to choose colors carefully, as certain color combinations can be difficult for some viewers to distinguish. When used appropriately, however, pie charts can be a useful tool for presenting data in a visually appealing and easy-to-understand way.

How to Choose Colors for Your Pie Chart

The colors used in a pie chart should be carefully chosen to ensure that they are distinct and easy to differentiate. It is essential to use color combinations that are visually appealing and do not clash. A good tip is to use a complementary color scheme, which involves choosing colors that are opposite each other on the color wheel.

Another important consideration when choosing colors for your pie chart is to keep in mind the audience and purpose of the chart. For example, if the chart is intended for a business presentation, it may be best to use professional and muted colors. On the other hand, if the chart is for a children’s educational book, bright and vibrant colors may be more appropriate. It is also important to consider any cultural or symbolic meanings associated with certain colors, as this can affect how the chart is perceived by different audiences.

Adding Data Labels to Your Pie Chart

Data labels are essential to ensure that the data presented in your pie chart is clear and easily understandable. Labels can be added to individual slices to show the actual value or percentage of data it represents. Additionally, a legend can be added to the chart to explain what each slice represents.

When adding data labels to your pie chart, it is important to consider the placement and formatting of the labels. Labels that are too small or placed too close to the slice can be difficult to read, while labels that are too large can clutter the chart. It is also important to choose a font and color that is easy to read and contrasts well with the background of the chart.

Another useful feature to consider when creating a pie chart is the ability to explode or highlight individual slices. This can be done to draw attention to a particular slice or to separate it from the rest of the chart for emphasis. Exploding a slice can also be used to show a breakdown of data within that slice, such as different categories within a larger category.

Customizing Your Pie Chart with Graphic Elements

There are many ways to customize your pie chart to create a unique and visually appealing design. Different graphic elements can be added, including shadow effects, 3D effects, and exploded pie charts. It is essential to experiment with different design elements to find the right style for your presentation.

Another way to customize your pie chart is by adding labels and annotations. Labels can be used to identify each slice of the pie chart, while annotations can provide additional information or context. You can also adjust the colors of each slice to create a more visually appealing chart. It is important to keep in mind that the design should not only be visually appealing but also clear and easy to understand for your audience.

Best Practices for Designing Effective Pie Charts in PowerPoint

When designing a pie chart, there are several best practices to keep in mind. Firstly, it is important to keep the chart simple and uncluttered to ensure that the data is clear and easy to understand. Secondly, it is important to use the right colors and labels to ensure that the data is communicated effectively. Finally, it is essential to define and limit the categories of data included in the chart to avoid confusion.

Another important consideration when designing a pie chart is to ensure that the chart is visually appealing and engaging. This can be achieved by using appropriate fonts, font sizes, and styles, as well as incorporating relevant images or icons to enhance the overall design. Additionally, it is important to ensure that the chart is properly formatted and aligned to avoid any visual inconsistencies or distractions that may detract from the data being presented.

Troubleshooting Common Issues with Pie Charts in PowerPoint

There are several common issues that can arise when creating pie charts in PowerPoint. For example, it can be challenging to ensure that the slices are correctly sized, labeled, and formatted. Additionally, there can be difficulties with exporting or sharing the charts with others. It is essential to test the chart thoroughly before presenting to ensure that it is visually appealing, easy to read, and accurately communicates the data.

Another common issue with pie charts in PowerPoint is the use of too many slices. When there are too many slices, the chart can become cluttered and difficult to read. It is recommended to limit the number of slices to no more than six or seven, and to group smaller slices into an “other” category. Additionally, it is important to choose colors that are easily distinguishable and avoid using patterns or textures that can make the chart confusing.

Exporting and Sharing Your Pie Chart from PowerPoint

Once you have created your pie chart, it is essential to export or share it effectively. PowerPoint allows you to export your chart as an image, which can be inserted into other documents or used on the web. Additionally, you can save your PowerPoint presentation as a PDF or share it with others using an online sharing platform. It is critical to ensure that the chart is still clearly presented and accurately communicates the data when shared or exported.

Creating a pie chart in PowerPoint can seem overwhelming at first, but it is a valuable skill that can enhance your presentations. By following the tips and best practices detailed in this article, you can create professional-looking charts that effectively communicate data and add interest to your presentations.

Another important aspect to consider when exporting or sharing your pie chart is the file format. Depending on the purpose of the chart, you may need to choose a specific file format that is compatible with the software or platform you will be using. For example, if you are sharing the chart on social media, you may want to export it as a JPEG or PNG file. On the other hand, if you are including the chart in a printed document, you may want to export it as a high-resolution PDF file.

It is also important to keep in mind the audience that will be viewing your chart. If you are presenting to a group of experts in your field, you may want to include more detailed information and labels on the chart. However, if you are presenting to a general audience, you may want to simplify the chart and use more visual elements to make it easier to understand. By tailoring your chart to your audience, you can ensure that it effectively communicates the data and enhances your presentation.

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Summary of the Latest Federal Income Tax Data, 2024 Update

New Internal Revenue Service ( IRS ) data on individual income taxes for tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. year 2021 shows the federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remained lower in 2021, four years after the Tax Cuts and Jobs Act ( TCJA ), than they were in 2017 prior to the reform. The 2021 data also reflects changes in people’s incomes and in government policy during the coronavirus pandemic.

• In 2021, taxpayers filed 153.6 million tax returns, reported earning more than $14.7 trillion in adjusted gross income ( AGI ), and paid nearly $2.2 trillion in individual income taxes.
• The average income tax rate in 2021 was 14.9 percent. The top 1 percent of taxpayers paid a 25.9 percent average rate, nearly eight times higher than the 3.3 percent average rate paid by the bottom half of taxpayers.
• The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent.
• The top 50 percent of all taxpayers paid 97.7 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 2.3 percent.
• The 2021 figures include pandemic-related tax items from the American Rescue Plan Act ( ARPA ), such as the non- refundable part of the third round of Recovery Rebates and the expanded child tax credit A tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. ( CTC ) and earned income tax credit ( EITC ).
• Capital gains realizations exceeded $2 trillion to reach a 40-year high, driving income growth and taxes paid for high-income groups.

Reported Income and Taxes Paid Increased in Tax Year 2021

Taxpayers reported more than $14.7 trillion in AGI on 153.5 million tax returns in 2021, an increase of nearly $2.2 trillion in AGI and a decrease of 3.9 million in returns compared to 2020. Total income taxes paid rose by $485 billion to nearly $2.2 trillion, a 28 percent increase above 2020. The average individual income tax An individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment . Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. rate inched up from 13.6 percent in 2020 to 14.9 percent in 2021.

Because the Office of Management and Budget (OMB) classifies the refundable part of tax credits as spending, the IRS does not include it in tax share figures. The result overstates the tax burden of the bottom half of taxpayers.

Pandemic-Related Downturn and Relief Programs

The pandemic-related downturn and relief programs both affect the 2021 data. After dropping by 6.6 percent from 2019 to 2020, AGI reported by the bottom half of taxpayers increased by 20 percent in 2021. The top half of taxpayers saw a 7 percent increase in AGI from 2019 to 2020 and a 17 percent increase in 2021. The American Rescue Plan Act (ARPA) provided a third round of recovery rebates of up to $1,400 per eligible individual and dependent, phasing out for single taxpayers with incomes above $75,000 and joint filers with incomes above $150,000. The ARPA also expanded premium tax credits, the child tax credit ( CTC ) to a maximum of $3,000 (with an extra $600 for children under age 6) that was fully refundable and available to households without earned income, and the earned income tax credit ( EITC ) for filers without qualifying children.

From 2020 to 2021, AGI grew across all income groups on average, but grew faster across higher income groups. A large part of that year-over-year income growth was from a significant increase in capital gains realizations after a strong year of stock market performance. Higher growth at higher income levels, combined with significant expansions of tax credits for middle- and lower-income groups, resulted in a larger share of income reported and taxes paid at the top and a higher average income tax rate overall..

The bottom half of taxpayers, or taxpayers making under $46,637, faced an average income tax rate of 3.3 percent. As household income increases, average income tax rates rise. For example, taxpayers with AGI between the 10th and 5th percentiles ($169,800 and $252,840) paid an average income tax rate of 14.3 percent—four times the rate paid by taxpayers in the bottom half.

The top 1 percent of taxpayers (AGI of $682,577 and above) paid the highest average income tax rate of 25.93 percent—nearly eight times the rate faced by the bottom half of taxpayers.

High-Income Taxpayers Paid the Highest Average Income Tax Rates

In 2021, taxpayers with higher incomes paid much higher average income tax rates than taxpayers with lower incomes.

High-Income Taxpayers Paid the Majority of Federal Income Taxes

In 2021, the bottom half of taxpayers earned 10.4 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal income taxes.

In all, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid more than $1 trillion in income taxes while the bottom 90 percent paid $531 billion.

The share of income taxes paid by the top 1 percent increased from 33.2 percent in 2001 to 45.8 percent in 2021. While the share has generally been increasing over the period, 2020 and 2021 are outlier years largely because of the changes in income and in tax policy during the coronavirus pandemic. Over the same period, the share paid by the bottom 50 percent of taxpayers fell from 4.9 percent to just over 2.3 percent in 2021.

Similarly, the share of adjusted gross income reported by the top 1 percent increased from 22.2 percent in 2020 to 26.3 percent in 2021. The AGI share of the top 1 percent tends to fluctuate over the business cycle, rising and falling to a greater extent than income reported by other groups. This was particularly the case in 2021 as capital gains realizations increased sharply to reach their highest level in 40 years. The share of AGI reported by the bottom 50 percent of taxpayers fell from 14.4 percent in 2001 to 10.4 percent in 2021 (a slight uptick from its share in 2020).

The Tax Cuts and Jobs Act Reduced Average Tax Rate The average tax rate is the total tax paid divided by taxable income . While marginal tax rates show the amount of tax paid on the next dollar earned, average tax rates show the overall share of income paid in taxes. s across Income Groups

The 2021 tax year was the fourth since the Tax Cuts and Jobs Act ( TCJA ) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction The standard deduction reduces a taxpayer’s taxable income by a set amount determined by the government. It was nearly doubled for all classes of filers by the 2017 Tax Cuts and Jobs Act ( TCJA ) as an incentive for taxpayers not to itemize deductions when filing their federal income taxes . and child tax credit, and more. The changes lowered tax burdens, on average, for taxpayers across all income levels. In 2021, tax relief in the form of expanded tax credits also affected average tax rates of middle- and lower-income taxpayers, though the IRS does not include the impact of the refundable portion of tax credits in its dataset. Average tax rates were lower in 2021 than in 2017 across all income groups.

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For data prior to 2001, all tax returns that have a positive AGI are included, even those that do not have a positive income tax liability. For data from 2001 forward, returns with negative AGI are also included, but dependent returns are excluded. The unit of analysis is the tax return. In the figures prior to 2001, some dependent returns are included. Under other units of analysis (like the U.S. Treasury Department’s Family Economic Unit), these returns would likely be paired with parents’ returns.

Income tax after credits (the measure of “income taxes paid” above) does not account for the refundable portion of tax credits such as the EITC. If the refundable portion were included, the tax share of the top income groups would be higher and the average tax rate of bottom income groups would be lower. The refundable portion is classified as a spending program by the Office of Management and Budget (OMB) and therefore is not included by the IRS in these figures.

The only tax analyzed here is the federal individual income tax, which is responsible for more than 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than federal payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government), and are more progressive than most state and local taxes.

AGI is a fairly narrow income concept and does not include income items like government transfers (except for the portion of Social Security benefits that is taxed), the value of employer-provided health insurance, underreported or unreported income (most notably that of sole proprietors), income derived from municipal bond interest, net imputed rental income, and others.

These figures represent the legal incidence of the income tax. Most distributional tables (such as those from the Congressional Budget Office ( CBO ), the Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and the Joint Committee on Taxation ( JCT )) assume that the entire economic incidence of personal income taxes falls on the income earner.

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