This might be the most underrated Excel function ever

Excel has hundreds of functions, and most of us stick to the familiar ones like SUM, AVERAGE, or IF. I was the same way until I stumbled across the IMAGE function, which has been around since 2022 but is rarely mentioned.

The IMAGE function lets you embed pictures directly into cells using URLs. That might sound simple, but the creative applications of Excel spreadsheets go well beyond just displaying a photo. You can build product catalogs, create visual directories, and even generate QR codes dynamically — all within your spreadsheet. If you work with data that could benefit from visual context, this function is worth adding to your toolkit. I’ve also included some practical ways to put it to use.

For years, images in Excel were a floating mess

The IMAGE function treats pictures as cell-bound data

The IMAGE function works like any other Excel formula — you type it into a cell, and it returns a result. The difference is that instead of returning a number or text, it pulls in a picture from a URL and displays it right inside the cell.

Here’s the syntax:

=IMAGE(source, [alt_text], [sizing], [height], [width])

The parameters break down as follows:

• source: The URL pointing to your image file, and this is the only required parameter.
• alt_text: A description of the image for accessibility purposes. This is optional but useful if you’re sharing the spreadsheet with others.
• sizing: Controls how the image fits within the cell. You have four options — 0 fits the image while maintaining aspect ratio, 1 fills the entire cell, 2 uses the original image size, and 3 lets you set custom dimensions.
• height and width: These only apply when you set sizing to 3. You specify dimensions in pixels.

A basic example looks like this:

=IMAGE("https://example.com/photo.png")

Excel fetches the image from that URL and embeds it directly into your cell. The image moves when you sort or filter your data, which is the entire point.

You can build a robust product catalog

Linking the inventory to web-hosted images saves manual work

If you’ve ever tried building a product catalog in Excel, you know the headache — images float over cells, they don’t move when you sort, and resizing one throws off the entire layout. With IMAGE, the picture lives inside the cell, so it behaves like any other piece of data.

Let’s say you’re tracking inventory for a small online store. You’d set up your spreadsheet with columns for the product name, image, price, and stock quantity. The image column contains the IMAGE formula pointing to each product’s photo URL.

Here’s what the structure looks like:

Now, when you sort by price or filter by stock quantity, the images follow their respective rows. If you update a product’s image URL, the new picture loads automatically, and you don’t need to delete and reinsert anything.

Dynamic employee directories look much better

Use free APIs to generate profile pictures from names automatically

The same concept works for employee directories, but with a twist. Instead of manually uploading profile pictures, you can use services that generate avatars automatically based on a URL pattern. This means new employees get a visual placeholder the moment you add their name, without waiting for HR to upload a headshot.

One option is UI Avatars, a free service that creates letter-based avatars from any name. The URL structure is predictable, so you can build it dynamically using Excel’s CONCAT function combined with employee data.

For example, if cell A2 contains “John Smith,” your formula would look like this:

=IMAGE("https://ui-avatars.com/api/?name=" & SUBSTITUTE(A2," ","+") & "&background=random&size=128")

The SUBSTITUTE function replaces spaces with plus signs, which the URL requires. The result is a colored circle with the employee’s initials — automatically generated for every row in your directory.

When actual headshots become available, you can swap the generated avatar URL for a real photo hosted on SharePoint or OneDrive. The formula structure stays the same since only the URL changes. This approach keeps your directory visually consistent from day one, which looks far better than empty cells or generic placeholder icons.

Use external APIs to render QR codes directly inside your cells

The QRServer API makes this simple

QR codes are just images, so any API that generates them can be used with the IMAGE function. You construct a URL with your data, and the API returns a QR code on the fly. When you change the source data, the QR code updates automatically, and there’s no need to generate and insert a new image manually.

One reliable option is QRServer, a free API that doesn’t require authentication. The URL structure is simple because you pass your data as a parameter, and it returns a PNG image. The following is the basic formula:

=IMAGE("https://api.qrserver.com/v1/create-qr-code/?size=150x150&data=" & A2)

In this example, A2 contains whatever you want to encode. It could be a website URL, product ID, or any text string. The size parameter controls the image dimensions in pixels. This opens up practical applications. Inventory managers can generate scannable codes for each item. Event organizers can create QR codes linking to registration pages. If you’re building a contact list, you can encode vCard data so scanning the code adds someone directly to a phone’s address book.

The formula also works with CONCAT for more complex data. Let’s say you want a QR code that links to a product page:

=IMAGE("https://api.qrserver.com/v1/create-qr-code/?size=150x150&data=https://yourstore.com/product/" & B2)

Here, B2 contains the product ID, and the formula dynamically builds the full URL.

Specific rules your images should follow

Public URLs and specific file formats are required for the function to load

The IMAGE function isn’t complicated, but it does have requirements that will break your formula if you ignore them. Knowing these upfront saves you from troubleshooting later. First, the function only works in Microsoft 365 — both the desktop app and the web version. If you’re using Excel 2016, 2019, or any standalone version, the formula will return an error. There’s no workaround for this; it’s a Microsoft 365 exclusive feature.

Your image URLs should use HTTPS, as unsecured HTTP links may fail, and Excel won’t tell you why, but the cell will just show an error. If you’re hosting images yourself, make sure your server supports HTTPS. Supported formats include PNG, JPEG, GIF, BMP, WEBP, and ICO. Other formats like SVG won’t work. If you have images in unsupported formats, you’ll need to convert them before hosting.

For most use cases, the file size limit isn’t a concern, but if you’re embedding high-resolution photos, they can increase workbook loading time and potentially slow Excel. The URL must point directly to the image file. Links to web pages containing images don’t work. If you right-click an image online and copy the image address, that’s usually the direct URL you need. Also, links that redirect or require authentication fail silently.

The IMAGE function pairs well with other features

Combine it with conditional logic for smarter spreadsheets

Once you’re comfortable with the basics, try nesting IMAGE inside an IF statement. You can display different icons based on cell values, for example, a green checkmark for completed tasks, a red X for pending ones. XLOOKUP and INDEX/MATCH also work well here, letting you pull image URLs from a separate reference table based on matching criteria.

Because images are treated as data, you can apply the same lookups, logic, and sorting to visuals as you do to text or numbers. Start with one use case and build from there.