Calculators
Accounts Receivable Days Calculator
Calculate days sales outstanding, receivables turnover and the cash released by collecting faster.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Credit control reporting
- Setting collection targets
- Estimating cash from better collections
- Assessing customer payment behaviour
About this tool
What the Accounts Receivable Days Calculator does
Accounts receivable days, or days sales outstanding (DSO), is the average number of days customers take to pay. It is receivables divided by credit sales, multiplied by the days in the period. Cutting DSO releases cash equal to the days saved multiplied by daily sales.
It also works as a DSO calculator or a days sales outstanding calculator.
Formula
- DSO = accounts receivable ÷ credit sales × days
- Receivables turnover = credit sales ÷ receivables
- Cash released = (DSO − target DSO) × daily credit sales
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Accounts receivable | $300,000 |
| Credit sales for the period | $2,400,000 |
| Days in period | 365 |
| Target DSO | 40 |
| Standard payment terms | 30 days |
| Result | Value |
|---|---|
| Days sales outstanding | 45.6 days |
| Cash released at target DSO | $36,986 |
| Receivables turnover | 8.00x |
| Days beyond payment terms | 15.6 days |
How to read the result
Compare DSO with your payment terms. A DSO well beyond terms usually means invoices go out late, disputes linger or reminders are not sent.
Use average receivables across the period if sales are seasonal; a single month-end figure can distort the result.
Related calculators
- Accounts Payable Days Calculator: Calculate days payables outstanding, payables turnover and the cash effect of changing supplier payment timing.
- Accounts Receivable Aging Calculator: Analyse receivables by age bucket, the share overdue and an expected-loss bad debt allowance.
- Accounts Payable Aging Calculator: Analyse bills owed by age bucket, the share overdue and the late fee exposure on overdue balances.
- Cash Flow Forecast Calculator: Forecast monthly closing cash from opening cash, receipts and payments with growth rates, and find the lowest point.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Divide accounts receivable by credit sales for the period and multiply by the number of days in that period.
Close to your standard payment terms. A DSO of 45 on 30-day terms suggests customers pay about two weeks late on average.
Invoice promptly, offer easy payment methods, automate reminders and follow up on disputes quickly.
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