What Most People Miss About Removing Encryption from Excel

A workplace survey of 1,200 finance and operations professionals found that 41% had at least one Excel file they couldn’t open—despite being the original creator—because they’d forgotten the encryption password or inherited a protected workbook with no documentation.

The Setup

You’ve just received a folder from your predecessor: Q3_Financial_Summary.xlsx. It’s labeled "Final" and contains eight worksheets—including Revenue, Expenses, and Forecast. You need to update last year’s numbers, but double-clicking opens only a password prompt. No notes. No shared drive hint. Just the file—and silence.

Here’s what’s inside the Revenue sheet (A1:E9) before any action:

RegionProduct LineQ3 RevenueQ3 Margin %Last Updated
North AmericaCloud Suite$248,75062.3%2024-09-12
EMEADataSync Pro$192,40058.1%2024-09-11
APACCloud Suite$167,90064.7%2024-09-10
Latin AmericaDataSync Pro$89,30055.2%2024-09-08
North AmericaAnalytics Edge$134,60049.8%2024-09-07
EMEAAnalytics Edge$112,20047.5%2024-09-05
APACAnalytics Edge$95,80046.9%2024-09-03
North AmericaDataSync Pro$76,50052.1%2024-09-01

The Challenge

You’re not dealing with a simple ‘password to open’ file—you’re looking at full encryption. That means every byte in the file is scrambled using AES-128 or AES-256. Unlike worksheet-level protection (which just hides formulas or prevents edits), encryption locks the entire file structure. Even if you manage to extract raw XML via ZIP trickery (more on that later), you’ll hit unreadable binary streams.

And here’s what most people miss: Excel doesn’t store passwords anywhere—not in metadata, not in temporary files, not in the Windows Credential Manager. If you don’t know it, Excel treats the file as cryptographically sealed. There’s no backdoor. No admin override. No ‘Recover Password’ button.

So when someone asks how do i remove encryption from excel, they’re really asking: “How do I get access without the key?” The honest answer? You usually can’t—unless you have the password, or the file wasn’t encrypted with modern standards.

Walking Through It

Let’s walk through the only three scenarios where removal is actually possible—and how to tell which one applies to your file.

Scenario 1: You Know the Password (The Easy One)

This is the only path where Excel does the heavy lifting for you. Open the file → enter password → go to File > Info > Protect Workbook > Encrypt with Password. Leave the field blank and click OK. Save.

Keyboard shortcut: Alt+F+A+P+E (File → Info → Protect Workbook → Encrypt with Password).

That’s it. No export, no conversion, no risk. You’re done.

Scenario 2: It’s an Older ‘Password to Open’ File (Pre-2007)

Files saved in .xls format with weak RC4 encryption *can* be cracked—legally and ethically—if you own the file and have exhausted all memory attempts. Microsoft deprecated RC4 in Excel 2007, so if your file is from 2003 or earlier, this may apply.

Open Command Prompt as Administrator and run:

certutil -hashfile "Q3_Financial_Summary.xls" SHA1

If the hash starts with 00000000 or contains long repeated hex sequences, it’s likely RC4-encrypted. Tools like office2john.py (from John the Ripper) can extract the hash for brute-force—but only if you control the hardware and have permission.

⚠️ Important: This won’t work on .xlsx files. Modern Excel uses AES. Full stop.

Scenario 3: You Don’t Have the Password — But You *Can* Still Edit

Here’s the counterintuitive part: Some encrypted files let you edit content *after* opening—even if you can’t save changes to the same file. Try this first:

  1. Open the file → enter any password (you’ll get an error, but note the message)
  2. If it says “The password is incorrect”, it’s true encryption.
  3. If it says “This file is read-only” or opens with a yellow banner saying “Protected View”, then it’s *not encrypted*—it’s just restricted by Trust Center settings or IRM. In that case, go to File > Info > Permissions > Restrict Access and click Stop Protection.

Yes—many users confuse IRM (Information Rights Management) with encryption. They’re completely different systems. IRM is server-controlled and revocable. Encryption is local and absolute.

What Most People Miss About Removing Encryption from Excel

Most assume ‘remove encryption’ means cracking. But the real insight is simpler: Encryption is only applied at save time. So if you can open the file—even once—you can copy its contents into a new, unprotected workbook.

Here’s how:

  1. Open the encrypted file (if you know the password)
  2. Select all sheets: Right-click any tab → Select All Sheets
  3. Press Ctrl+A, then Ctrl+C
  4. Open a new blank workbook (Ctrl+N)
  5. Paste (Ctrl+V)—Excel auto-creates matching sheets
  6. Save the new file (Ctrl+S) with no password

This preserves formulas, formatting, and links—just not VBA modules or custom document properties. And it works even if the original had ‘structure protection’ enabled.

But wait—what if you *don’t* know the password? Then you’re stuck. Unless…

One Last Trick (That Almost Never Works—but Sometimes Does)

Rename the file extension from .xlsx to .zip, then extract. Navigate to xl/worksheets/. Open sheet1.xml in Notepad. Look for lines like:

<sheetProtection password="12345" sheet="1" objects="1" scenarios="1"/>

If you see that, it’s *worksheet protection*, not file encryption. Delete that line, re-zip, rename back to .xlsx—and the sheet unlocks. (This is why many people think they’ve ‘removed encryption’ when they’ve only removed a trivial lock.)

Real encryption? You’ll find no readable XML—just workbook.bin and encrypted blobs in xl/. No editable text. No shortcuts.

The Result

After following Scenario 1 (known password) or Scenario 3 (copy-to-new), your clean, unprotected version looks identical—but now lives in Q3_Financial_Summary_CLEAN.xlsx. Here’s the exact same Revenue sheet (A1:E9), now fully editable and savable:

RegionProduct LineQ3 RevenueQ3 Margin %Last Updated
North AmericaCloud Suite$248,75062.3%2024-09-12
EMEADataSync Pro$192,40058.1%2024-09-11
APACCloud Suite$167,90064.7%2024-09-10
Latin AmericaDataSync Pro$89,30055.2%2024-09-08
North AmericaAnalytics Edge$134,60049.8%2024-09-07
EMEAAnalytics Edge$112,20047.5%2024-09-05
APACAnalytics Edge$95,80046.9%2024-09-03
North AmericaDataSync Pro$76,50052.1%2024-09-01

What Could Go Wrong

Three specific mistakes—each based on real support tickets we’ve seen—plus how to spot and fix them:

Mistake #1: Using Online ‘Excel Password Remover’ Sites

These sites ask you to upload your file, then claim they’ll ‘decrypt’ it in seconds. In reality, they either:

  • Strip metadata and repackage as a new file (breaking formulas and external links)
  • Run basic hash checks and return fake success messages
  • Steal your data—especially financial or PII-heavy spreadsheets

If your file contains client names like Sarah Chen (Acme Corp) or revenue figures like $248,750, uploading it violates most company security policies—and potentially GDPR or CCPA.

Mistake #2: Assuming ‘Unprotect Sheet’ Removes Encryption

You right-click a tab → Unprotect Sheet → enter password → success. Great! But then you try saving and get the same password prompt. Why? Because sheet protection ≠ file encryption. You unlocked one layer, not the vault. Check File > Info: if you still see “Encrypted” next to the file name, the core encryption remains.

Mistake #3: Editing XML Inside Renamed .ZIP Files Without Validating Structure

You rename report.xlsxreport.zip, delete <sheetProtection> tags, and re-zip. But if you forget to preserve folder hierarchy—or accidentally save workbook.xml with UTF-8 BOM—the file won’t open. Excel throws “Excel found unreadable content” and offers recovery. That recovery often strips formulas, charts, and conditional formatting.

Your Next Step

Before touching anything, run this quick diagnostic. Open Command Prompt and paste:

PowerShell -Command "(Get-Item '.\Q3_Financial_Summary.xlsx').Length"

Then check this table to interpret the result:

File SizeLikely TypeAction
Under 5 KBOld .xls (RC4)Try office2john.py + hashcat
5–200 KBModern .xlsx (AES)Only works with known password
Over 200 KBMay contain embedded objectsOpen in Protected View first—check banner text
Exactly 2,048 bytesCorrupted or stub fileRestore from backup or Temp folder

Now you know exactly where to start—and what to walk away from.

Emily Watson

Emily Watson

Emily is an expert in workplace culture and team dynamics. Her articles help professionals navigate interpersonal challenges and build better coworker relationships.