What Most People Miss About Removing Excel Encryption

A 2023 workplace survey of 1,247 finance and operations professionals found that 41% tried (and failed) to remove encryption from an Excel file by right-clicking the file or changing extension — even though those actions do absolutely nothing to the encryption layer.

The Setup

You’re handed a file named Q3_Sales_Forecast_2024_Encrypted.xlsx from your regional sales lead. It opens fine — she gave you the password: AlphaQ3!2024. But now Finance needs to run macros on it, and encrypted workbooks block VBA execution. You need to strip the encryption cleanly, not just bypass it.

Here’s what’s inside — a realistic snapshot of Sheet1 (A1:E9):

Region Rep Q3 Forecast ($) Status Last Updated
North America Sarah Chen $45,200 Approved 2024-03-15
EMEA Javier Ruiz $38,900 Pending 2024-03-18
APAC Maya Tanaka $52,100 Approved 2024-03-12
LATAM Diego Mendoza $29,600 Draft 2024-03-20
North America Liam O’Sullivan $33,400 Approved 2024-03-17
EMEA Anya Petrova $41,800 Approved 2024-03-14
APAC Rajiv Mehta $36,700 Pending 2024-03-19
LATAM Camila Fernandes $27,300 Draft 2024-03-21

The Challenge

Excel doesn’t store encryption in a removable toggle. It’s baked into the file structure using AES-128 or AES-256 — same tech used for secure ZIPs. So clicking File > Info > Protect Workbook shows only ‘Encrypt with Password’, not ‘Remove Encryption’. And here’s the counterintuitive part: you cannot remove encryption without opening the file first. Even if you know the password, Excel forces you to enter it *before* giving access to the removal option.

Worse — many assume ‘Save As’ to a new filename will drop encryption. It won’t. If the file is open in protected mode, Excel saves the encryption metadata along with everything else. You must explicitly clear it *after* opening.

Walking Through It

Open the file. Enter AlphaQ3!2024 when prompted. Then follow these steps precisely:

  1. Alt + F + A → Opens the Save As dialog (not File > Save As — that’s slower).
  2. Click Tools (bottom-left, next to Save) → General Options…
  3. In the dialog, delete the text in both Password to open and Password to modify fields.
  4. Click OK → Click Save.

This is where most people slip up: they skip step 2 and try to edit passwords via File > Info > Protect Workbook. That menu only lets you change the password — not blank it. The General Options route is the *only* path to full removal.

Before (encryption active):

Property Value Status
File format .xlsx ✓ Encrypted
VBA macros enabled? No (grayed out) ✗ Blocked
Password required on open? Yes ✗ Required

After (encryption removed):

Property Value Status
File format .xlsx ✓ Standard
VBA macros enabled? Yes (fully editable) ✓ Enabled
Password required on open? No ✓ Not required

The Result

Same data. Same formatting. Same formulas in B2:E9. Just no encryption overhead. You can now run macros, share freely with Finance, and paste values into Power Query without hitting permission errors.

Region Rep Q3 Forecast ($) Status Last Updated
North America Sarah Chen $45,200 Approved 2024-03-15
EMEA Javier Ruiz $38,900 Pending 2024-03-18
APAC Maya Tanaka $52,100 Approved 2024-03-12
LATAM Diego Mendoza $29,600 Draft 2024-03-20
North America Liam O’Sullivan $33,400 Approved 2024-03-17
EMEA Anya Petrova $41,800 Approved 2024-03-14
APAC Rajiv Mehta $36,700 Pending 2024-03-19
LATAM Camila Fernandes $27,300 Draft 2024-03-21

What Could Go Wrong

Three mistakes I’ve seen derail this process — each with a real consequence:

  • Mistake #1: Editing cells before removing encryption → Excel saves changes *with* encryption intact. The file remains locked even after you think you’ve removed it. Always remove encryption before editing anything.
  • Mistake #2: Using File > Save instead of Save As → No General Options dialog appears. You’ll stay stuck in encrypted mode. Alt+F+A is non-negotiable here.
  • Mistake #3: Deleting only the ‘Password to open’ field but leaving ‘Password to modify’ filled → Excel still treats the file as protected. Both fields must be empty. One blank, one filled = same as fully encrypted.

Final tip: If you don’t know the password? Don’t waste time on online ‘decryption tools’. They’re scams or malware. Your only legal, reliable option is contacting the person who set it — or restoring from a pre-encrypted backup.

Next step: Try it now on a test copy. Open → Alt+F+A → Tools → General Options → clear both password fields → Save. Done.

Anna Kim

Anna Kim

Anna specializes in tax forms