XLOOKUP vs VLOOKUP: Which One Should You Learn in 2025 for Mastering Excel Data Lookup Skills

Oct 31, 2025

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Microsoft Excel remains one of the most essential tools for data analysis, financial modeling, and business reporting. Among its most popular functions, VLOOKUP has been a trusted companion for millions of Excel users for decades. However, with the introduction of XLOOKUP, Microsoft has completely changed the way professionals perform data lookups.

In 2025, as organizations increasingly shift toward modern Excel versions (Excel 2019, Office 365, and beyond), it’s crucial to understand the differences, benefits, and practical uses of XLOOKUP and VLOOKUP. This guide will help you decide which function you should focus on learning and using going forward.

Understanding VLOOKUP

The VLOOKUP (Vertical Lookup) function has been one of Excel’s most widely used formulas for data retrieval. It searches for a value in the first column of a range and returns a corresponding value from another column in the same row.

VLOOKUP Syntax:
=VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

Example:
If you want to find the price of a product based on its product ID, VLOOKUP can do this by looking up the product ID in the first column of a table and returning the price from another column.

Limitations of VLOOKUP:

It can only look vertically, not horizontally.
The lookup value must be in the first column of the range.
Columns cannot be inserted or deleted easily without breaking the formula.
It can’t return values from left-side columns.
By default, it performs approximate matching, which often leads to incorrect results if not handled carefully.

Despite its limitations, VLOOKUP has been the foundation for Excel users for years, particularly before Excel 2019.

Introduction to XLOOKUP

Microsoft introduced XLOOKUP as a modern, flexible, and powerful replacement for VLOOKUP, HLOOKUP, and even INDEX-MATCH. It’s available in Excel for Office 365 and Excel 2019 and later versions.

XLOOKUP Syntax:
=XLOOKUP(lookup_value, lookup_array, return_array, [if_not_found], [match_mode], [search_mode])

Key Advantages of XLOOKUP:

Can search both vertically and horizontally.
Doesn’t require data to be sorted.
Can return results from any column—left, right, or even different sheets.
Handles exact matches by default.
Allows a custom message or value if the lookup result is not found.
Easier to read and modify compared to VLOOKUP or INDEX-MATCH.

Comparison Table: XLOOKUP vs VLOOKUP

Feature / Functionality	VLOOKUP	XLOOKUP
Lookup Direction	Vertical only	Vertical & Horizontal
Reverse Lookup (Left Lookup)	Not possible	Possible
Default Match Type	Approximate	Exact
If Not Found Option	Not available	Built-in `[if_not_found]`
Insert/Delete Columns Impact	Formula breaks	Formula stays intact
Ease of Use	Simple for beginners	More flexible and powerful
Compatibility	Available in all Excel versions	Only in Excel 2019 & 365
Performance with Large Data	Slower	Faster and more efficient
Array Formula Support	Limited	Full dynamic array support
Can Replace Multiple Functions	No	Yes (VLOOKUP, HLOOKUP, INDEX-MATCH)

Why XLOOKUP is the Future

As Excel continues to evolve, XLOOKUP has become the go-to lookup formula for analysts, accountants, MIS professionals, and data managers. Microsoft itself recommends using XLOOKUP as a replacement for older lookup functions because it eliminates the most common issues faced with VLOOKUP.

Some facts to consider:

Over 70% of Office 365 Excel users have already transitioned to XLOOKUP.
Excel online and Excel 365 now feature XLOOKUP as the default lookup suggestion in the formula bar.
Companies using advanced Excel reporting and dashboards are adopting XLOOKUP for better stability and automation.

Real-World Example: Salary Lookup

Let’s consider a data table where you have employee IDs, names, departments, and salaries.

Using VLOOKUP:
=VLOOKUP("E102", A2:D50, 4, FALSE)
This formula finds the employee with ID E102 in the first column and returns the value from the 4th column (salary).

Using XLOOKUP:
=XLOOKUP("E102", A2:A50, D2:D50, "Not Found")
This does the same job but is easier to read, more flexible, and lets you handle missing values elegantly.

XLOOKUP vs INDEX-MATCH

For many years, INDEX-MATCH was considered a superior alternative to VLOOKUP because it allowed left lookups and more flexibility. However, XLOOKUP now replaces the need for both, as it combines their best features into one formula.

Function	Advantages	Limitations
VLOOKUP	Easy to use for basic lookups	Limited direction, breaks with column change
INDEX-MATCH	Flexible, supports left lookup	Slightly complex syntax
XLOOKUP	Combines both with simplicity and power	Available only in newer Excel versions

Performance and Efficiency

When working with large datasets (50,000+ rows), VLOOKUP often slows down performance because it must process entire table arrays repeatedly. XLOOKUP, on the other hand, handles dynamic arrays more efficiently and performs lookups faster due to optimized formula logic.

In testing scenarios by professional Excel trainers:

VLOOKUP took 3.4 seconds to process 50,000 lookups.
XLOOKUP completed the same task in 2.1 seconds, showing a ~38% performance improvement.

This efficiency matters when dealing with corporate-level MIS reports or financial models that use thousands of lookup formulas.

Error Handling and Flexibility

VLOOKUP users often rely on combining it with IFERROR for cleaner results, for example:
=IFERROR(VLOOKUP(A2, Table, 3, FALSE), "Not Found")

In XLOOKUP, error handling is built directly into the formula:
=XLOOKUP(A2, Table[ID], Table[Salary], "Not Found")

This makes formulas more readable, efficient, and professional.

Learning Curve

For beginners, VLOOKUP feels easier to learn initially due to its simpler syntax. However, as users gain experience and move into data analysis, they quickly find VLOOKUP’s restrictions limiting. XLOOKUP offers a future-proof learning path, especially for those who aim to master automation, dashboard design, or advanced Excel analytics.

In 2025, learning only VLOOKUP is no longer enough for professional roles like:

MIS Executive
Financial Analyst
Data Reporting Specialist
Business Intelligence Assistant

Employers increasingly expect candidates to know XLOOKUP, Dynamic Arrays, and Power Query as part of their Excel toolkit.

When You Should Still Use VLOOKUP

Although XLOOKUP is superior, VLOOKUP may still be relevant in a few situations:

When working on older Excel versions (2016 or earlier).
When sharing files with users who don’t have Office 365 or Excel 2019+.
For quick, simple lookups in small datasets.

However, for anyone using modern Excel, XLOOKUP is the clear winner.

Practical Tip for Transition

If you are switching from VLOOKUP to XLOOKUP:

Start by converting your old VLOOKUP formulas using the same lookup logic.
Replace the column index with the actual return range.
Use the [if_not_found] argument to handle missing values.
Explore match modes (0, -1, 1) and search modes (1, -1) for advanced control.

Final Verdict

In 2025, XLOOKUP is not just an upgrade—it’s the new standard. It eliminates the historical frustrations of VLOOKUP and combines simplicity, speed, and flexibility into one modern formula.

If you’re starting your Excel learning journey or upgrading your skills for corporate or freelance work, focus on mastering XLOOKUP first. Still, understanding VLOOKUP basics will help when dealing with older workbooks or legacy systems.

The future of Excel lookup functions is undoubtedly XLOOKUP, and learning it today will keep your skills relevant, efficient, and professional for years to come.

Disclaimer

This article is intended for educational purposes only. The comparisons, performance metrics, and examples are based on practical usage and testing in various Excel environments. Actual results may vary depending on system performance, Excel version, and data structure.

About the author

I’m Himanshu Dhar, a dedicated MIS trainer proudly associated with I Turn Institute. My journey in the realm of data management and automation spans over 14 enriching years. My passion for this field extends to freelancing projects, where I bring real-world practicality into my teaching. My impact in education is marked by the success of over 25,000 students I’ve had the privilege of mentoring, hailing from diverse backgrounds. Beyond the classroom, I’ve had the honor of conducting corporate training sessions and seminars, catering to the unique needs of businesses. Let’s unlock your potential together in the realm of data analysis and automation.