Excel vs Software: The True Cost of DIY Portfolio Tracking
Millions of investors still use Excel to track their portfolio. It's free, flexible and familiar. But does it actually make financial sense? This guide calculates the real cost in time, errors and missed opportunities.
Spoiler: the true cost of Excel is not zero. It often far exceeds the cost of any dedicated software.
The Time Cost: How Many Hours Are You Spending?
Every portfolio update requires repetitive manual operations. Let's see how much time portfolio management realistically takes with Excel versus an automated tool.
| Task | Excel (min) | DonkyCapital (min) |
|---|---|---|
| Update prices for 20 securities | 15–25 | 0 (automatic) |
| Record a new transaction | 5–10 | 1–2 |
| Calculate YTD performance | 10–20 | 0 (real-time) |
| Update allocation by asset class | 10–15 | 0 (automatic) |
| Generate monthly report | 30–60 | 1–3 |
| Reconcile with broker statement | 20–40 | 5–10 |
| Check received dividends | 10–20 | 0 (automatic) |
Estimated monthly total: Excel 100–190 min · DonkyCapital 7–15 min
With 10 hours/year saved on an average portfolio, at €30/h opportunity cost, that's €300/year recovered — even with a €10,000 portfolio.
The Error Rate: Excel Is Not Infallible
A University of Hawaii study analysed 13,000 corporate Excel spreadsheets: 94% contained at least one error. For financial portfolios, the consequences can be costly.
Formula errors
Dragging a formula and forgetting to lock an absolute reference. Result: completely wrong performance calculations for months.
Impact: rebalancing decisions based on incorrect data
Unhandled stock splits
A company does a 3:1 split and you forget to update the spreadsheet. Historical performance becomes incomprehensible.
Impact: distorted historical performance, incorrect average cost
Unrecorded dividends
It's easy to forget to log automatically credited dividends. Actual performance appears understated.
Impact: real return undervalued by 1–3% per year
Multiple versions and inconsistent data
You have three file versions: "portfolio_final", "portfolio_final_v2", "portfolio_OK". Which one is correct?
Impact: risk of making decisions on stale data
DonkyCapital automatically handles splits, dividends and price updates. No formulas to maintain, no risk of incorrect versions.
ROI Analysis: Is Switching to Software Worth It?
Let's translate lost time into real money. The calculation uses the opportunity cost concept: the value of the hour you could dedicate to something else (work, family, study).
Casual Investor
€10,000–30,000Costo orario
€20/h
Ore/anno su Excel
12 hours/year
Costo opportunità/anno
€240/year
Rischio aggiuntivo
+ missed opportunities from imprecise analysis
Active Investor
€30,000–100,000Costo orario
€35/h
Ore/anno su Excel
25 hours/year
Costo opportunità/anno
€875/year
Rischio aggiuntivo
+ errors that can cost 1–2% of portfolio
Advanced Investor
€100,000+Costo orario
€50/h
Ore/anno su Excel
40 hours/year
Costo opportunità/anno
€2,000/year
Rischio aggiuntivo
+ 2% on €100k = additional €2,000 at risk
The cost of professional portfolio tracking software is typically between €0 and €15/month. Break-even is reached by saving just 1–2 hours/year.
The right question is not "can I afford software?" but "can I afford NOT to use it?"
What You Actually Gain with DonkyCapital
Beyond time savings, dedicated software offers features that are structurally impossible to replicate in Excel.
Real-time prices
Automatic updates for stocks, ETFs, crypto — no need to open Yahoo Finance and copy-paste.
TWR/MWR performance
Automatic calculation of time-weighted and money-weighted returns — the standard metrics used by professionals.
Multi-broker in one view
Consolidate Fineco, Degiro, Scalable Capital and any other broker in a single dashboard.
Asset class allocation
Instantly see how you're distributed across stocks, ETFs, bonds, crypto and unlisted assets.
Benchmarks and inflation
Compare your performance against indices like MSCI World or S&P500 — and check if you're beating inflation.
Transaction history
Every purchase, sale, dividend and commission recorded permanently and searchably.
When Excel Still Makes Sense
Being honest: there are cases where Excel remains the right choice.
- •You have fewer than 5 positions and almost never trade
- •You have very custom analysis needs that no software supports
- •You're learning Excel and the portfolio is a didactic exercise
- •You need very specific tax models for your situation
In all other cases — meaning the vast majority of investors — switching to dedicated software has a positive ROI from the very first month.
Frequently Asked Questions
Can I import my Excel portfolio into DonkyCapital?
Yes. DonkyCapital supports CSV file import from many brokers (Degiro, Scalable, Fineco and others). You can also enter transactions manually or import from a structured Excel spreadsheet.
Do I lose control of my data if I use software?
No. Your data remains yours. DonkyCapital does not share data with third parties and you can export your portfolio at any time.
Is Excel really that prone to errors?
Academic research confirms it: 94% of complex Excel spreadsheets contain at least one error. For financial portfolios with performance formulas, the risk is real especially after corporate events (splits, spin-offs, special dividends).
Is dedicated software suitable for beginners too?
Absolutely. DonkyCapital is designed to be intuitive even for those just starting out. You don't need to know TWR formulas or understand how average cost calculations work — the software does everything automatically.
How long does it take to migrate from Excel to DonkyCapital?
For most investors, less than an hour. If you have a broker compatible with CSV import, you can import your entire history in minutes. For very large portfolios or many brokers, it might take a few hours — but it's a one-time investment.
Ready to Stop Wasting Time?
Start today with DonkyCapital. Free, no credit card required, and your portfolio will be updated in real-time from day one.
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