Accounts Receivable Calculator
Calculate days sales outstanding and the cash tied up in unpaid invoices.
What the Accounts Receivable Calculator does
Days sales outstanding measures how long customers take to pay. It converts your receivables balance into a number of days of revenue, which makes it comparable across periods and against your stated payment terms.
Formula
DSO = (Accounts receivable ÷ Revenue) × Period daysReceivables turnover = Revenue ÷ Accounts receivableCash released = Days reduced × Daily revenue
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Accounts receivable balance | selected currency | Yes | Accepts more than 0. |
| Revenue for the period | selected currency | Yes | Accepts more than 0. |
| Period length | days | Yes | Accepts 1 or more. |
| Your payment terms | days | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Accounts receivable balance, Revenue for the period and Period length.
- Optionally add Your payment terms.
- Select Calculate.
Worked example
$420,000 of receivables against $3,600,000 annual revenue, on 30-day terms.
- Receivables
- 420000
- Revenue
- 3600000
- Days
- 365
- Terms
- 30
DSO 42.6 days — 12.6 days beyond terms, tying up about $124,000 of extra cash.
Frequently asked questions
How do I reduce DSO?
Invoice immediately, make terms explicit, automate reminders before the due date, offer early-payment discounts, and follow up the moment an invoice goes overdue.