What is VLOOKUP in Excel: Uses & Practical Examples

Dealing with massive loads of data and conducting data analysis requires analysis and visualization software like MS Excel.Along with being a spreadsheet software program, MS Excel is also an analysis tool and a powerful data visualization tool, making it a popular choice among data analysts globally. 

Did you know? Excel is the most used spreadsheet tool in the world! It includes a range of functions and formulas, each designed to serve different data analysis, extraction, and organization purposes. VLOOKUP in Excel is one such function that data analysts use to search for information from a table consisting of vast volumes of data. 

In this article, we will take a deeper look into exploring the various components of VLOOKUP in Excel. So, read along to explore comprehensive tips, and functional arguments and further explore how VLOOKUP in Excel exactly works.

What is VLOOKUP in Excel?

VLOOKUP (Vertical Lookup) is a built-in Excel function that allows users to search for a value in the first column of a specified range and return a corresponding value from another column. It is widely used for data retrieval and comparison within structured datasets.

This function is particularly useful in large datasets where manually searching for values would be inefficient. VLOOKUP helps in tasks such as finding product prices, retrieving employee details, or mapping reference data across spreadsheets, making data management and analysis much easier.

How VLOOKUP Works?

VLOOKUP searches for a specific value in the first column of a given table and returns data from a different column in the same row. It follows a structured lookup process:

• The function scans the first column of the table for the lookup value.
• It returns the corresponding value from the specified column.
• It can perform exact or approximate matches, depending on the requirement.
• By default, it assumes an approximate match unless explicitly set to find an exact match.

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VLOOKUP Formula and Syntax

To use VLOOKUP effectively, understanding its syntax is crucial. The formula follows this structure. You may think of VLOOKUP as searching for a specific piece of information in a given area and retrieving related data from another column. 

Here’s how the VLOOKUP formula works:

VLOOKUP (value to find, where to search, which column to pull from, exact/closest match).

This function simplifies data retrieval by allowing you to locate and extract information efficiently. Let’s further understand the VLOOKUP formula in Excel.

VLOOKUP Formula in Excel

The VLOOKUP formula in MS Excel looks like this:

If you want to explain this to a layman, it should be something like “you have to search for a piece of information, in this particular area, and give the corresponding data/information from another column”. 

Another way of explaining this goes like VLOOKUP (value to be found, table reference, pulling a matching and similar value from the nth column of the table, closest/exact match).

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VLOOKUP Function Arguments 

When you go through VLOOKUP examples, you will come across many new terms. These are called arguments in technical language. To understand VLOOKUP in Excel well, you must first have a clear idea about these arguments. 

Let’s discuss these arguments further:

Lookup_value

This argument is required in any VLOOKUP formula. Lookup_value points toward the value you want to look up in the first column of a table. 

• Table_array

This is also a mandatory argument needed in the formula. The table array is the data array that you have to find. In the VLOOKUP function, the search starts from the left-most column of this array. 

• Col_index_num

No VLOOKUP function can work without this col_index_num argument. This is an integer. This specifies the column number of the given table_array, which you want to return a value from. 

• Range_lookup 

This is an optional argument. This argument defines what result the function will show if there is no exact match to the lookup_value. You can set the argument to TRUE or FALSE. The meaning of TRUE or FALSE is as follows:

TRUE 

If the argument is TRUE, it is an approximate match. An approximate match occurs when an exact match doesn’t exist. In such a case, you have to use the closest match below the lookup_value.

FALSE

If the argument is FALSE, this shows the exact match. If it cannot locate an exact match, it will return an error. 

6 Steps to Use VLOOKUP Function

If you’re about to start using VLOOKUP in Excel for your work, you may want to check out the following steps before using this function.  Follow these steps to use the VLOOKUP function in Excel:

Step 1: Preparing Your Data  

VLOOKUP functions in left to right order. Therefore, the information you need to find should be to the left of the corresponding data you want to extract. The arrangements of the columns are an important factor for the seamless functioning of the VLOOKUP formula. 

Step 2: Entering the VLOOKUP Function

In this second step, you instruct Excel on what to find. So, you have to type the formula “=VLOOKUP(“. Next, you select the cell containing the information you want to find. 

Step 3: Specifying the Lookup Value 

In the third step, you have to select the table where the data is located. Next, you instruct Excel to search the leftmost column for the data selected in the previous step (Step 2). 

Step 4: Telling Excel which column to output the data from

In this step, you need to tell MS Excel the column containing the data you need as an output from the VLOOKUP formula. Excel will need a number corresponding to the column number in the table provided to carry out this work. 

Step 5: Finding the approximate or exact match

This is the final step of using VLOOKUP in Excel. Here you have to tell Excel whether you are looking for an ‘approximate’ or ‘exact’ match by entering ‘TRUE’ or ‘FALSE’ in the formula.

An approximate match proves to be very useful when looking for a figure which might not be there in the table. In such a case, Excel will look for a number closest to the given figure, even when the given figure is not present in the dataset. With this, you can prevent mistakes in the VLOOKUP function and formula.

Advanced VLOOKUP Techniques 

VLOOKUP is a powerful function in Excel that allows users to search for values across datasets. While its basic application is widely known, more advanced techniques can significantly enhance data retrieval, especially when working with multiple spreadsheets, workbooks, or specific matching conditions.

How to Do VLOOKUP in Excel With Two Spreadsheets? 

When working within the same Excel file but across different sheets, VLOOKUP can pull data from another sheet by specifying the sheet name in the formula. This is useful for organizing data efficiently without keeping everything on one sheet.

• Use =VLOOKUP(lookup_value, 'Sheet2'!range, column_index, FALSE) to reference another sheet.
• Ensure that the range includes both the lookup column and the column containing the return value.
• Use absolute references (e.g., $A$2:$B$100) if copying the formula to multiple cells.

How to Do VLOOKUP in Excel With Two Workbooks?

When referencing data from a completely different Excel file, the VLOOKUP function requires specifying the external workbook name along with the sheet name. This method is helpful when dealing with linked data across files.

• Use =VLOOKUP(A2, '[Workbook.xlsx]SheetName'!A: B, 2, FALSE).
• The external workbook must be open; otherwise, Excel may return an error.
• If the external workbook is closed, the full file path must be included.

VLOOKUP with Multiple Criteria (Alternatives)

Since VLOOKUP searches only a single column, it does not support multiple criteria directly. However, alternative functions, such as INDEX-MATCH or helper columns, can achieve similar results.

• Use a helper column: Concatenate multiple columns into a unique key and search based on that.
• Use INDEX-MATCH with MATCH: This combination allows flexible lookups across multiple criteria.
• Use XLOOKUP (Excel 365/2019): It supports multiple criteria without additional formulas.

VLOOKUP with Partial Match

VLOOKUP can also be used to find approximate matches when exact values are not available. This is useful for searching values that contain only part of the lookup text.

• Use =VLOOKUP("*"&lookup_value&"*", range, column_index, FALSE) to search within text.
• Use wildcards: * (matches any number of characters) and ? (matches a single character).
• Consider SEARCH or FILTER functions if more flexibility is needed.

Important Tips To Use VLOOKUP Function Efficiently

Now that you know the basics of VLOOKUP in Excel, here are some crucial pointers that you must always remember:

• In VLOOKUP, it always looks to the right side. This is because the data it fetches is from the columns to the right of the first column in the given table. 
• When you omit range_lookup, you will get a non-exact match with the VLOOKUP formula. But if there is an exact match, that will be displayed. 
• Case-sensitiveness doesn’t work with this formula.
• If duplicate values exist in the lookup column, VLOOKUP will only match the first value. 
• VLOOKUP allows wildcard usage like an asterisk (*) or a question mark (?).

Conclusion

We hope that this in-depth guide on VLOOKUP gave you a better understanding of its functionality in scanning different types of data. VLOOKUP in Excel is probably the most popular function and has its unique advantages and disadvantages. The greatest benefit of this function is that it is simple and easy to decipher. 

VLOOKUP will scan the data table, find a match, and show the correct result. This function is used by both beginners to experts in MS Excel and for different jobs. Moreover, there are abundant VLOOKUP examples available for your quick reference.

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