How to Remove Excel Compatibility Mode for Better Performance – 2025

SAAC's Team
SAAC's Team October 27, 2025
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Excel Compatibility Mode

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How to Remove Excel Compatibility Mode for Better Performance

If you’ve ever opened an old Excel file and noticed “Compatibility Mode” displayed in the title bar, you might have wondered what it means—and how to turn it off. Compatibility Mode is a feature designed to ensure older Excel files can still be opened, viewed, and edited in newer versions of Excel. While it’s useful for backward compatibility, it also limits access to modern Excel features like new formulas, chart types, and advanced formatting.

In this comprehensive guide, you’ll learn what Compatibility Mode is, why it appears, its limitations, and how to turn it off so you can make full use of Excel’s latest tools and features.

Excel Compatibility Mode

What Is Excel Compatibility Mode?

Compatibility Mode is a built-in Excel feature that allows users to open and edit workbooks created in older versions (like Excel 97–2003, which use the .xls format). When you open such a file in newer versions like Excel 2016, 2019, or Microsoft 365, Excel automatically runs it in Compatibility Mode to prevent loss of data or formatting.

Excel Compatibility Mode2

You’re in Compatibility Mode when:

  • The Excel title bar says “[Compatibility Mode]” next to the file name.

  • Certain new features are unavailable or greyed out.

  • The file is saved in the .xls format instead of .xlsx or .xlsm.

In simple terms, Compatibility Mode ensures you don’t accidentally use features that older versions of Excel can’t read. However, if you’re no longer sharing files with older versions, it’s best to disable Compatibility Mode to unlock full Excel functionality.

Why You Should Turn Off Compatibility Mode

While Compatibility Mode is great for preserving backward compatibility, it has some major drawbacks:

1. Limited Features

Some features in modern Excel versions—like dynamic arrays, Power Query, modern charts, and new formulas (like XLOOKUP or TEXTJOIN)—are unavailable when a file is in Compatibility Mode.

2. Slower Performance

Older file formats like .xls are less efficient than the modern .xlsx format. This can make large files slower to open, save, or process.

3. Compatibility Warnings

Each time you save or open an old file, Excel may display compatibility warning messages.

4. File Size

Modern Excel file formats are compressed and smaller in size compared to older formats.

By converting your file to a modern format, you’ll eliminate these limitations and enjoy better performance, stability, and access to the full range of Excel tools.

How to Turn Off Compatibility Mode in Excel

Turning off Compatibility Mode in Excel is straightforward. You can do this by converting the workbook to the latest file format. Follow the steps below.

Step 1: Open the File

  1. Launch Microsoft Excel.

  2. Open the workbook that’s currently running in Compatibility Mode.

  3. You’ll see [Compatibility Mode] next to the file name at the top.

Step 2: Save the File in a New Format

  1. Click the File tab in the upper-left corner.

  2. Select Info from the left-hand menu.

  3. If your file is in an older format, you’ll see a Convert button or message that says, “This workbook is in Compatibility Mode.”

  4. Click Convert.

Alternatively, you can use Save As:

  1. Go to File > Save As.

  2. Choose the folder where you want to save the file.

  3. In the Save as type dropdown menu, select Excel Workbook (*.xlsx).

  4. Rename the file if needed and click Save.

Your file will now be in the modern Excel format, and Compatibility Mode will automatically be turned off.

Step 3: Reopen the Converted File

After saving the new file, close it and reopen it in Excel. You should notice that the [Compatibility Mode] label is gone from the title bar. This means the file is now fully compatible with modern Excel features.

You can now access advanced functions, new chart types, and enhanced formatting options that were previously unavailable.

Step 4: Check for Compatibility Issues Before Converting

Before converting an old Excel file, it’s wise to check for potential compatibility issues that might affect formatting or data. Excel includes a built-in Compatibility Checker for this purpose.

To run the Compatibility Checker:

  1. Open your workbook in Excel.

  2. Click File > Info.

  3. Select Check for Issues > Check Compatibility.

  4. Review the list of features that may not work in older Excel versions.

This ensures that when you convert the file, you won’t lose any important formatting, formulas, or functionality.

Step 5: Save All Future Files in the New Format

To avoid running into Compatibility Mode again, make sure all future files are saved in the modern .xlsx format.

To set this as the default format:

  1. Go to File > Options.

  2. Click Save from the left-hand panel.

  3. Under Save workbooks, find Save files in this format.

  4. Choose Excel Workbook (*.xlsx) from the dropdown list.

  5. Click OK to confirm.

From now on, every new file you create will automatically save in the latest Excel format, ensuring full compatibility and no limitations.

Step 6: Converting Multiple Files at Once (Optional)

If you have many older Excel files in .xls format, converting them one by one can be time-consuming. You can use Excel VBA or PowerShell scripts to batch convert them into the .xlsx format.

Simple VBA example to convert multiple files:

  1. Press Alt + F11 to open the VBA editor.

  2. Insert a new module and paste the following code:

Sub ConvertFilesToXLSX()
Dim file As String
Dim wb As Workbook
Dim folderPath As String

folderPath = "C:\Users\YourName\Documents\OldExcelFiles\" 'Change this path
file = Dir(folderPath & "*.xls")

Do While file <> ""
Set wb = Workbooks.Open(folderPath & file)
wb.SaveAs folderPath & Replace(file, ".xls", ".xlsx"), FileFormat:=xlOpenXMLWorkbook
wb.Close False
file = Dir
Loop
End Sub

  1. Change the folder path to your file directory.

  2. Run the macro, and all .xls files in that folder will be converted automatically.

Troubleshooting: What If Compatibility Mode Won’t Turn Off?

Sometimes, even after converting a file, Compatibility Mode may persist. Here are some quick fixes:

  • Check file extension: Make sure the file extension is .xlsx, not .xls.

  • Save again under a new name using the latest format.

  • Ensure Excel is updated to the latest version.

  • Remove embedded objects or macros that might force backward compatibility.

If none of these work, create a new blank Excel file and copy-paste all your data into it, then save it as an .xlsx file.

Benefits of Turning Off Compatibility Mode

After converting your file, you’ll immediately notice several advantages:

  • Access to modern Excel formulas and functions like XLOOKUP, FILTER, and UNIQUE.

  • Ability to use Power Query, Power Pivot, and other data tools.

  • Faster save and load times due to the compressed .xlsx format.

  • Reduced file size and better performance.

  • Full access to the latest chart types, icons, and themes.

Conclusion

Turning off Excel Compatibility Mode is a simple yet powerful way to ensure you’re getting the most out of Microsoft Excel. While it helps maintain compatibility with older versions, it also limits access to many of Excel’s most useful modern features.

By converting your workbook to the .xlsx format, running a compatibility check, and setting new defaults, you’ll enhance your productivity, improve file performance, and eliminate unnecessary restrictions.

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