Both Excel and Power BI are powerful tools for working with data — but they’re designed for different things. Excel is ideal for quick analysis, calculations, and modelling, while Power BI is built for handling larger datasets, creating dashboards, and sharing insights.

If you’re looking to build modern data skills, Power BI is increasingly the tool employers expect alongside Excel.

At a glance:

• Excel = flexible, familiar, great for analysis and modelling
• Power BI = scalable, visual, designed for dashboards and reporting
• Excel works best for individual use and smaller datasets
• Power BI is better for sharing insights and handling larger data
• Most professionals benefit from using both together

What’s the difference between Power BI and Excel?

Excel and Power BI are both Microsoft tools, and they actually complement each other more than they compete. The key difference is in how they’re used.

Excel is typically used for exploring and analysing data, while Power BI is designed to turn that data into interactive, shareable insights.

Data volume and connectors: Excel vs Power BI

One of the biggest differences between Excel and Power BI is how much data they can handle — and where that data comes from.

Excel is well known for its flexibility and ease of use. It’s great for working with smaller datasets, running calculations and building models. However, performance can slow down as data volumes grow.

Power BI, on the other hand, is built to handle large datasets and multiple data sources. It connects to cloud platforms, databases and live data feeds, allowing you to bring everything together in one place.

It also uses a more powerful data engine, meaning it can process and refresh data more efficiently than Excel.

In short: Excel is great for working with data, Power BI is better for working across data.

Presenting and sharing: dashboards vs spreadsheets (Excel vs Power BI)

When it comes to presenting insights, this is where Power BI really stands out.

Excel allows you to create charts, tables and even dashboards — but they are often static and require manual updates or sharing via files.

Power BI is designed specifically for visualisation and sharing. You can build interactive dashboards that update in real time and can be accessed from anywhere.

For example:

• Power BI dashboards are interactive and dynamic
• Reports can be shared via links rather than files
• Users can filter and explore data themselves

This makes Power BI particularly valuable for collaboration and decision-making across teams.

Pricing: Excel vs Power BI plans

The pricing structure is another key difference, and it’s often where confusion comes in.

Excel pricing

Excel is typically included as part of a Microsoft 365 subscription, so many users already have access to it. This makes it a low-cost, accessible option for individuals and teams.

Power BI pricing

Power BI offers a few different pricing tiers:

• Power BI Free
  Suitable for individual use. You can create reports and dashboards, but sharing is limited.
• Power BI Pro (per user)
  Enables sharing, collaboration and publishing dashboards across teams. This is the most common option for businesses.
• Power BI Premium (per user or capacity)
  Designed for larger organisations that need advanced features, higher performance and the ability to share content with users who don’t have licences.

In simple terms:

• Free = build
• Pro = share
• Premium = scale

Which should you learn: Excel or Power BI?

The honest answer is — both. But if you’re prioritising your development, Power BI is becoming increasingly important.

Excel remains a core skill and is still widely used across roles. However, Power BI reflects how modern organisations work with data: connected, visual and collaborative.

Learning Power BI alongside Excel allows you to move from basic analysis to delivering insights that influence decisions.

Upskill your data skills with Power BI

If you’re looking to take your data skills further, learning Power BI is a strong next step. It builds on your Excel knowledge and helps you work with larger datasets, create dashboards and communicate insights more effectively.

Explore Analytics in Power BI: ICAEW Certificate