A donut chart shows how a set of categories add up to a whole, the same idea as a pie chart, but with a hollow center instead of a solid circle. It works best when you are comparing 2 to 4 categories. Add more than that and the slices get too thin to read, so a bar chart usually tells the story better once your category count grows.
This guide assumes you already have a dataset loaded in Power BI Desktop. If you have not done that yet, start with the Loading Datasets in Power BI Desktop guide first, then come back here.
In the Visualizations pane on the right, click the Donut Chart icon. This adds an empty donut chart visual to the report canvas, ready for your fields.

Still in the Visualizations pane, find the field you want to measure, such as sales or a count of records, and drag it into the Values section. This is what the donut chart will actually size its slices by.

Drag the field you want to split your data by, for example product category or region, into the Legend section. This is the step that turns one plain circle into separate colored slices, one per category.

Click the Format icon (it looks like a paint roller) to open the Format pane on the right. Look for Data Labels and switch it on. This prints the value or percentage directly on each slice, so anyone reading the report can see the numbers at a glance instead of hovering over the chart.

One thing that sets a donut chart apart from a pie chart is that empty middle, and Power BI lets you use it. In the Format pane, under the Visual tab, turn on Center value. Power BI will display the sum of your values right in the center of the ring. From there you can control the number format, choose thousands or millions as display units, change the font, and even add a short label above or below the number, for example “Total Sales” instead of the field name.
Both charts plot the same kind of data and both work off Values and Legend fields the same way, so switching between them is mostly a style choice. The donut’s hollow center gives you somewhere to put a total or a short label, which a pie chart does not have room for. A donut also tends to look cleaner once you get to 3 or 4 categories, since the ring shape reads a little easier than a full circle of narrow wedges. A plain pie chart is still a fine choice when you only have 2 categories and do not need anything shown in the middle.
Rounding percentages too early. If your slice percentages are close to each other, add a decimal place to the data labels so the values do not visually contradict the numbers underneath.
That covers building, formatting, and choosing a donut chart in Power BI. To keep building out your report with other chart types, explore Prwatech’s Power BI training program, which includes placement assistance.