VLOOKUP vs INDEX MATCH (Which Is Better?)
VLOOKUP and INDEX MATCH are two of the most common ways to look up data in Excel. While both can return matching values from a table, they work very differently — and choosing the right one can save you time and prevent broken formulas.
In this guide, you’ll learn how VLOOKUP and INDEX MATCH compare, when to use each, and why many Excel users eventually switch to INDEX MATCH.
What Is VLOOKUP?
VLOOKUP searches for a value in the first column of a table and returns a corresponding value from another column in the same row.
It’s commonly used for:
- Simple lookups
- Small datasets
- Beginner-friendly models
If you’re new to lookups, start here first:
Mastering VLOOKUP in Microsoft Excel
What Is INDEX MATCH?
INDEX MATCH is a combination of two functions:
- INDEX returns a value from a specific position
- MATCH finds the position of a value in a range
Together, they create a flexible lookup that doesn’t rely on column order.
Basic structure:
=INDEX(return_range, MATCH(lookup_value, lookup_range, 0))
Key Differences Between VLOOKUP and INDEX MATCH
1. Lookup Direction
VLOOKUP:
- Can only look to the right
- Lookup value must be in the first column
INDEX MATCH:
- Can look left or right
- Lookup and return columns can be anywhere
This alone makes INDEX MATCH more flexible.
2. Column Insert Safety
VLOOKUP:
- Uses a column number
- Breaks if columns are inserted or removed
INDEX MATCH:
- Uses column references
- Does not break when the table structure changes
This makes INDEX MATCH safer for long-term models.
3. Performance on Large Datasets
On very large datasets:
- VLOOKUP can become slow
- INDEX MATCH is generally faster and more efficient
For dashboards or reporting models, performance matters.
When VLOOKUP Is the Better Choice
VLOOKUP is still useful when:
- You’re working with simple tables
- The structure won’t change
- You want quick, readable formulas
- You’re teaching or learning Excel fundamentals
If that’s your use case, VLOOKUP is perfectly acceptable.
When INDEX MATCH Is the Better Choice
INDEX MATCH is better when:
- Your lookup column isn’t on the left
- Columns may be added or removed
- You’re building scalable or reusable models
- You want more control over how lookups behave
This is why many advanced Excel users rely on INDEX MATCH.
INDEX MATCH in Dashboards and Reports
INDEX MATCH is especially useful in dashboards and reports where data structures change frequently.
If you’re combining lookups with reporting tools, these guides pair naturally:
Common Errors to Watch For
Both functions can return errors if:
- Data types don’t match (text vs numbers)
- Extra spaces exist in lookup values
- Exact match settings are incorrect
If you see frequent errors, this guide will help:
Common Excel Errors and How to Fix Them
Final Verdict: Which Should You Use?
Use VLOOKUP if:
- You want simplicity
- Your data is stable
- You’re just getting started
Use INDEX MATCH if:
- You need flexibility
- Your data structure may change
- You’re building professional models
Most Excel users start with VLOOKUP — and eventually graduate to INDEX MATCH. Knowing both gives you the best of both worlds.
