When working with data in Excel, choosing the right formula can mean the difference between a fast, accurate spreadsheet and one that’s prone to errors and limitations.
Two popular lookup functions, VLOOKUP and the combination of INDEX MATCH, often find themselves in comparison. While VLOOKUP is more widely known, INDEX MATCH offers significant advantages.
In this post, we’ll explore why you should consider using INDEX MATCH instead of VLOOKUP for your Excel lookups.
Example Dataset
Let’s use the following dataset as a reference:
| Product Code | Product Name | Price |
| A101 | Widget | 15.00 |
| B202 | Gadget | 25.00 |
| C303 | Thingamajig | 35.00 |
| D404 | Doohickey | 45.00 |
We’ll base all formulas and explanations on this table.
I’ve chosen quirky names because, honestly, today my creativity tank is running low. Let’s just say it’s one of those days!
Understanding VLOOKUP
VLOOKUP (“Vertical Lookup”) is one of the most commonly used functions in Excel. It searches for a value in the first column of a table and returns a value in the same row from another column. Let’s break it down step by step:
How VLOOKUP Works
Here’s the syntax of VLOOKUP:
=VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])
- lookup_value: The value you’re searching for. For example, a product code like “B202”.
- table_array: The range of cells that contains the data. For our dataset, this would be A2:C5.
- col_index_num: The column number (starting from 1) that contains the value you want to return. For example, the price is in column 3.
- [range_lookup]: Optional. Use FALSE (or 0) for an exact match and TRUE (or 1) for an approximate match.
Step-by-Step Example
Let’s say you want to find the price of the product with the code “B202”.
- Identify the lookup_value: “B202”.
- Define the table_array: A2:C5 (this includes the product codes, names, and prices).
- Specify the col_index_num: Since the price is in the third column, you’ll use 3.
- Set the range_lookup to FALSE for an exact match.
The formula becomes:
=VLOOKUP(“B202”, A2:C5, 3, FALSE)
Excel searches for “B202” in the first column (A2:A5), finds it in the second row, and then returns the corresponding value from the third column (C2:C5). The result is 25.00.
Limitations of VLOOKUP
While VLOOKUP is easy to use and widely taught, it comes with several limitations:
- Fixed Column Reference
- You must specify the column index number (e.g., 3 for the price). If you add or remove columns in your table, the formula may break or return incorrect results.
- Left-to-Right Lookup Only
- VLOOKUP can only search for values in the first column of your table and return values from columns to its right. It cannot perform a “right-to-left” lookup.
- Performance Issues
- When working with large datasets, especially using approximate match (TRUE), VLOOKUP can slow down your spreadsheet.
- No Case Sensitivity
- VLOOKUP does not differentiate between uppercase and lowercase text.
By understanding these limitations, you can better appreciate the advantages of alternative solutions like INDEX MATCH.
Understanding INDEX MATCH
INDEX MATCH combines two functions to overcome these limitations. Let’s break it down step by step:
How INDEX Works
The INDEX function retrieves the value of a cell based on its position (row and column) within a specified range. Think of it as pointing to a specific location on a map and asking, “What is here?”
Here’s the syntax:
=INDEX(array, row_num, [column_num])
- array: This is the range of cells where you’re looking for a value. For example, if you’re searching for prices, your array might be C2:C5.
- row_num: This tells Excel which row to look at within the array.
- column_num: If your array has more than one column, this specifies which column to return the value from. (For our example, we’ll only work with single-column arrays, so this part is optional.)
Example: If you use:
=INDEX(C2:C5, 2)
Excel will return 25.00 because that’s the second value in the range C2:C5.
How MATCH Works
The MATCH function finds the position of a value in a range. It’s like asking, “Where is this item located?”
Here’s the syntax:
=MATCH(lookup_value, lookup_array, [match_type])
- lookup_value: The value you’re searching for. For example, “B202”.
- lookup_array: The range where Excel should look for the value. For example, A2:A5.
- match_type: This specifies how Excel matches the value:
- Use 0 for an exact match (recommended for most cases).
- Use 1 or -1 for approximate matches (less common).
Example: If you use:
=MATCH(“B202”, A2:A5, 0)
Excel will return 2 because “B202” is the second item in the range A2:A5.
Combining INDEX and MATCH
When you put INDEX and MATCH together, you get a formula that can look up a value in any column based on a match in another column.
Here’s the combined syntax:
=INDEX(return_range, MATCH(lookup_value, lookup_range, 0))
- return_range: The range containing the values you want to return (e.g., C2:C5 for prices).
- lookup_value: The value you’re looking for (e.g., “B202”).
- lookup_range: The range where Excel will search for the lookup value (e.g., A2:A5 for product codes).
Step-by-Step Example: Let’s find the price of the product with the code “B202”:
- Use MATCH to find the position of “B202” in the product code column:
=MATCH(“B202”, A2:A5, 0)
This returns 2 because “B202” is the second item in A2:A5.
- Use INDEX to retrieve the price from the price column (C2:C5) based on this position:
=INDEX(C2:C5, 2)
This returns 25.00.
- Combine the two formulas into one:
=INDEX(C2:C5, MATCH(“B202”, A2:A5, 0))
This formula first finds the position of “B202” (step 1) and then retrieves the corresponding price (step 2). The result is 25.00.
Why Use INDEX MATCH Over VLOOKUP?
1. No More Left-to-Right Limitation
Unlike VLOOKUP, INDEX MATCH can perform lookups in any direction. For example, if you want to find the price of “Gadget” (in column C) using its product code (in column A):
=INDEX(C:C, MATCH(“B202”, A:A, 0))
2. Resilience to Table Changes
With VLOOKUP, inserting or deleting columns can break your formula because the column index number is hard-coded. INDEX MATCH, however, dynamically references ranges. If you adjust your table structure, your formula still works as long as the named ranges or references remain valid.
3. Superior Performance with Large Datasets
For extensive data, INDEX MATCH often outperforms VLOOKUP. This is because MATCH only works with a single column to find the row position, reducing computational overhead compared to VLOOKUP, which processes entire table arrays.
4. Enhanced Accuracy
INDEX MATCH allows for exact match (“0”) and approximate match (“1” or “-1”) lookups, offering greater control over results. Additionally, it can differentiate between text cases when paired with functions like EXACT, making it suitable for case-sensitive searches.
5. Nested Lookups Become Easier
If you need to perform nested lookups (e.g., look up a value and then use it as the basis for another lookup), INDEX MATCH excels. Its modular structure allows for greater adaptability in complex scenarios.
Real-World Example: Comparing VLOOKUP and INDEX MATCH
Let’s find the price of the product with the code “C303” using both methods.
Using VLOOKUP
Since the price column is to the right of the product code column, VLOOKUP works:
=VLOOKUP(“C303”, A:C, 3, 0)
Using INDEX MATCH
INDEX MATCH handles this just as well:
=INDEX(C:C, MATCH(“C303”, A:A, 0))
Now, what if you want to look up the product name (column B) using the price (column C)? VLOOKUP cannot do this because it cannot search to the left.
INDEX MATCH, however, can:
=INDEX(B:B, MATCH(35, C:C, 0))
The Challenge of Learning INDEX MATCH
Learning INDEX MATCH isn’t easy. Personally, I struggled with memorizing its syntax and understanding its logic. Many times, I found myself googling “how to use INDEX MATCH” because I would forget key details.
The way I overcame this difficulty was by forcing myself to use INDEX MATCH even for simple tasks where VLOOKUP could have sufficed. This repetitive practice helped me get accustomed to its structure and logic. Over time, it became second nature, and now I can confidently say it was worth the effort.
If you’re in the same boat, I encourage you to persist. Use INDEX MATCH in your daily workflows, even for small lookups. Soon, you’ll find yourself reaching for it without hesitation.
Common Pitfalls and How to Avoid Them
While INDEX MATCH is powerful, keep these tips in mind:
- Use Named Ranges: Simplify formulas and improve readability by naming your lookup and return ranges.
- Anchor Your Ranges: Use absolute references (e.g., $A$1:$A$100) to avoid errors when copying formulas.
- Combine with Other Functions: For added functionality, pair INDEX MATCH with IFERROR to handle missing values gracefully:
=IFERROR(INDEX(C:C, MATCH(“B201”, A:A, 0)), “Not Found”)
Conclusion
While VLOOKUP is a reliable tool for basic lookups, INDEX MATCH provides superior flexibility, accuracy, and resilience for dynamic data management. By investing a little time to learn and implement INDEX MATCH, you’ll future-proof your spreadsheets and unlock new possibilities for working with data.
Remember, the learning curve might be steep, but consistent practice will make you proficient.
Start using INDEX MATCH today and experience the difference!