When you first start investing, a simple spreadsheet seems like the obvious choice for tracking your portfolio. It's free, flexible, and you already know how to use it. But as your portfolio grows, you might find yourself spending hours updating data, fixing formulas, and struggling with complex calculations. This guide compares both approaches to help you decide when it's time to upgrade.

The Spreadsheet Approach

Spreadsheets like Excel and Google Sheets have been the go-to solution for investors for decades. They offer unmatched flexibility and zero cost for basic tracking.

Advantages of Spreadsheets

Complete Customization
Build exactly what you need. Track any data point, create custom formulas, and design your own reports.
No Subscription Costs
Google Sheets is free, and you might already have Excel. No monthly fees eating into your returns.
Full Data Ownership
Your data stays in your files. Export, backup, and migrate whenever you want.
Educational Value
Building formulas yourself teaches you exactly how investment math works.

Disadvantages of Spreadsheets

Manual Price Updates
Unless you use complex APIs or GOOGLEFINANCE functions (which often break), you're manually entering prices.
Dividend Tracking Nightmare
Manually recording every dividend, handling reinvestments, and tracking dividend growth becomes tedious quickly.
Complex Performance Calculations
Time-weighted returns, money-weighted returns, and XIRR calculations are error-prone to build correctly.
No Multi-Currency Support
European investors holding US stocks face constant currency conversion headaches.
Formula Errors
One broken formula can cascade errors throughout your entire spreadsheet, giving you incorrect performance data.

The Portfolio Tracker App Approach

Dedicated portfolio tracking applications are purpose-built for investment management. They handle the complexity behind the scenes so you can focus on your investment strategy.

Advantages of Portfolio Tracker Apps

Automatic Price Updates
Real-time or daily price updates happen automatically. No more manual data entry.
Dividend Tracking
Automatic dividend detection, reinvestment tracking, and yield calculations.
Professional Analytics
Sharpe ratio, beta, alpha, sector allocation, and other metrics calculated automatically and correctly.
Multi-Currency Native
Hold investments in any currency with automatic conversion to your home currency.
Time Savings
What takes hours in a spreadsheet happens instantly. Spend time investing, not data entry.

Disadvantages of Portfolio Tracker Apps

Subscription Costs
Most apps charge monthly or yearly fees, though many offer free tiers for smaller portfolios.
Less Flexibility
You're limited to the features the app provides. Custom calculations might not be possible.
Data Privacy Concerns
Some apps sync with your brokerage, raising security questions. Look for manual-entry options.

Side-by-Side Comparison

Feature	Spreadsheet	Tracker App
Price updates	Manual or unreliable	Automatic
Dividend tracking	Manual entry	Automatic detection
Performance metrics	Build yourself	Pre-built & accurate
Multi-currency	Complex setup	Native support
Time required	Hours/month	Minutes/month
Cost	Free	Free tier or paid
Customization	Unlimited	Limited
Learning curve	Steep for advanced	Usually easy

When to Stick with Spreadsheets

Spreadsheets remain the right choice in several scenarios:

Just starting out: If you have fewer than 5 holdings and make infrequent trades, a simple spreadsheet is sufficient.
Single market, single currency: Investors buying only domestic stocks in their home currency face fewer complexity issues.
Unique tracking needs: If you track unconventional assets or need custom calculations no app provides.
Learning phase: Building your own tracking system teaches valuable lessons about investment math.

When to Switch to a Tracker App

Consider upgrading when you experience these pain points:

Growing portfolio: More than 10-15 holdings across multiple accounts makes manual tracking burdensome.
International investments: Holding stocks in multiple currencies creates conversion headaches in spreadsheets.
Dividend income: Tracking dividend payments, yields, and reinvestments is tedious manually.
Performance analysis: Wanting metrics like Sharpe ratio, time-weighted returns, or sector exposure.
Time value: When your time is worth more than the cost of an app subscription.

The Real Question

Ask yourself: “How many hours per month do I spend updating my spreadsheet?” If the answer is more than 2-3 hours, a tracker app likely pays for itself in time savings—and that's time you could spend researching your next investment.

Making the Transition

If you decide to move from a spreadsheet to an app:

Export your transaction history — Most tracker apps can import CSV files with your historical trades.
Start with one account — Migrate gradually rather than trying to move everything at once.
Keep your spreadsheet as backup — Run both systems in parallel for a few months to verify accuracy.
Check the numbers — Ensure your total values and performance metrics match before fully committing.

Conclusion

There's no universally “right” answer. Spreadsheets work well for simple portfolios and investors who enjoy hands-on data management. Portfolio tracker apps make sense when your time is valuable and your investment complexity has grown beyond what a spreadsheet handles elegantly.

Many investors start with spreadsheets and naturally graduate to apps as their portfolios grow. The key is recognizing when manual tracking is costing you more in time and potential errors than an app subscription would cost in money.

Spreadsheet vs. Portfolio Tracker App: Which is Right for You?