Excel's XLOOKUP and VLOOKUP functions are used to analyze large sets of data quickly. VLOOKUP is a function that has been used in Excel for years. However, there is a newer function that you should be using called XLOOKUP.

Both have their advantages and limitations. We're here to break down the differences and help you decide which one is a better fit for your project.

How Does VLOOKUP Work?

VLOOKUP stands for Vertical Look-up. It is an Excel function that performs vertical lookups for a value in the leftmost column of a dataset and then returns a unique value from another column, in the same row. The syntax for the VLOOKUP function is as follows:

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

Let's look at an example. Suppose you have a list of smartphone device models in your dataset, and need to pull up some specific information about them.

VLOOKUP function in Excel

You can use the VLOOKUP function to pull up additional information about their processors and price points.

Smartphone device information extracted using VLOOKUP

Here's a detailed guide on how to use the VLOOKUP in Excel to extract specific information from a dataset. Although VLOOKUP is one of the best functions in Excel and can help you simplify large datasets, it does have a couple of limitations. For instance, the data needs to be arranged in ascending order for the formula to work.

How Does XLOOKUP Work?

XLOOKUP allows you to perform horizontal and vertical look-ups to search for a value in a spreadsheet. The function essentially performs an array lookup. If a match is found, it returns the corresponding item from the second data range (return_array).

XLOOKUP function in Excel

It is more effective than other look-up options as it comes up with an exact match by default. You can use the optional arguments in the ([match_mode]) argument to specify the type of approximate matching values you need—an exact match or a subsequent lower or higher value, or a wildcard character match.

It can be used for various purposes, including financial analysis, marketing and sales analysis, and so on. The syntax for the XLOOKUP function is as follows:

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

The following guide will take you through the basics and help you understand how to use the XLOOKUP function in your workbook. Both of these functions require a minimum of three arguments.

The Key Differences Between XLOOKUP and VLOOKUP

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While there are many similarities between XLOOKUP and VLOOKUP, it's important to understand the differences.

1. Column Index Number

When running VLOOKUP, you will need to go to the source table to check and specify the exact column index number.

VLOOKUP requires a column index number parameter to return the correct results. Using an incorrect column index number can result in a different output from your worksheet or data, either in the form of an incorrect value or a "#REF" error.

Column index number argument in VLOOKUP

In the example above, let's say you need to extract the processor details for the device, Apple iPhone 12. We'll be using the second data set for all examples.

Accordingly, we need to enter the lookup value, i,e, the device Apple iPhone 12 in Column J, which happens to be the leftmost column in our example dataset, and the corresponding table array (Columns J and K). The value would need to be retrieved from the second column in the table array, that is the search column K, hence, the column index number would be 2.

XLOOKUP is a dynamic function that does away with the column index number argument, which means that you don't need to worry about counting how many columns are in a table. You will only need to specify the lookup and search columns, which will save you a lot of time and effort.

2. Robustness and Flexibility

Once you've established your model, you should be able to quickly update the source table with fresh data without worrying about your formulas breaking. With VLOOKUP, adding or moving columns means you have to redo the entire formula.

XLOOKUP is a more robust function that allows you to add or remove columns without worrying about errors. Just make sure you do not insert a column or row outside the lookup array, in which case the function will return an error.

3. Custom Error Messages

The XLOOKUP function is convenient to use. It allows you to input a custom error text message in the [if_not_found] argument that will show up if the lookup value is not found.

XLOOK syntax in Excel

VLOOKUP does not offer a similar functionality. You might need to use other functions such as IFERROR as a workaround, in cases where no matches are found.

Why Is XLOOKUP Better Compared to VLOOKUP?

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Although VLOOKUP has its uses, it is more limited in functionality than XLOOKUP. This makes XLOOKUP the preferred choice for working on larger datasets. The results are faster and less prone to error, too. Let's understand why XLOOKUP works better compared to VLOOKUP.

1. XLOOKUP Isn't Limited to Specific Data Ranges

XLOOKUP is much more flexible than VLOOKUP, which can look up values only in the leftmost column of a table, and return values from corresponding columns on the right, as we saw in the example above. In contrast, the XLOOKUP model requires simpler steps and can return values for any column in either direction.

2. XLOOKUP Defaults to an Exact Match

By default, the VLOOKUP function in Excel assumes to search for an approximate match. However, if an exact match is required for your worksheet, you should input "FALSE" in the range_lookup argument.

The XLOOKUP function searches for the lookup value in the specified range that is an exact match by default. If an exact match cannot be found, you can modify the argument to search for an approximate match that may be less than or more than the lookup value.

To do this, you can set the optional [match_mode] argument to 0 = exact match (default), -1 = exact match or next smallest, 1 = exact match or next largest, or 2 = wildcard match.

XLOOKUP exact match default input

3. XLOOKUP Can Handle Column Insertions or Deletions

VLOOKUP is a great application for finding specific data from another spreadsheet or table. However, it is more of a static measure—if you need to update the data source or make changes or reorder the columns, the formula breaks, and you end up losing the VLOOKUP function.

XLOOKUP, on the other hand, is a more dynamic measure that can handle column changes and still return accurate lookup results. It comes with more specific parameters, such as the lookup array and the return array, instead of the table array argument and column index number in VLOOKUP.

4. XLOOKUP Performs Vertical And Horizontal Look-Ups

The XLOOKUP function can find data in both horizontal and vertical arrays, as opposed to VLOOKUP, which can perform vertical look-ups of data only.

5. XLOOKUP Provides Smarter Approximate Matches

If you're looking for an item that's close to what you want, XLOOKUP will give you more accurate results. It offers more accurate results and fewer false positives.

With VLOOKUP, however, if you want to find an approximate match from your spreadsheet, the function will only return the next smaller value of matching reference. But XLOOKUP allows you to perform a better approximate match and return the next larger or smaller values from your lookup table as well.

6. XLOOKUP Needs Fewer Cell References

While using XLOOKUP, all you need is to select two specific ranges of data—an array or range from where you want to search for a value (lookup_array), and an array/range from which you wish to retrieve the value (return_array).

The VLOOKUP function, on the other hand, requires you to select an entire range of data using the table_array parameter. This can be a problem with complex datasets because if your spreadsheet is large, it could be difficult to reorder or select the entire cell range that you want to return a value from. Further, to return an approximate match using VLOOKUP, the data in the table must always be sorted in ascending order.

VLOOKUP or XLOOKUP: Which One Is for You?

So, is XLOOKUP better than VLOOKUP? On a straight comparison, the answer would have to be yes. However, it may not be as simple as that for all users. For instance, you might prefer an older function if you’re particularly adept with it or when you find a use for a specific function that is suited to your use.

For larger data sets, XLOOKUP is likely the better option for you due to its increased functionality. VLOOKUP has several limitations that make it difficult to use for complex data—and as a result, XLOOKUP has much more flexibility, making it the better choice for most spreadsheet users.