Both are spreadsheets, both use formulas, and a formula written in one mostly works in the other. The differences that actually matter show up in scale, collaboration, and what you’re trying to build.
Handling large datasets
Excel is built for heavier lifting — it handles larger datasets more smoothly, offers more advanced PivotTable and Power Query options, and generally stays responsive with complex workbooks that would start to lag in a browser tab.
Real-time collaboration
Sheets has the clear edge here — multiple people editing the same spreadsheet simultaneously, with changes appearing instantly and a simple, reliable version history. Excel supports co-authoring through OneDrive, but it’s a newer layer on an older tool, and it doesn’t always feel as instant.
Formulas and functions
The core formula language is nearly identical, and most simple formulas translate directly between the two. Excel has a deeper bench of advanced functions and more powerful tools for automation (Power Query, more advanced macros via VBA); Sheets has tighter, simpler integration with other Google tools like Forms and Apps Script.
Working offline
Excel’s desktop app works fully offline without any setup. Sheets needs offline access turned on ahead of time per device — fine if you remember, frustrating if you don’t.
Price
Sheets is free with a Google account. Excel needs a purchase or a Microsoft 365 subscription.
Which one should you use
For a shared budget, a sign-up sheet, or anything a small group is editing together casually, Sheets is usually the easier choice. For heavy data work, complex formulas, or a workbook that needs to hold up under a lot of rows and formatting, Excel still has more headroom.