Accounts Receivable Days Calculator (DSO)
Enter your accounts receivable balance, total credit sales, and the period length to calculate your DSO.
Accounts Receivable Days Calculator (DSO)
Calculate Days Sales Outstanding (DSO) — how long it takes to collect payment after a sale.
DSO measures how efficiently a business collects payment on credit sales. A lower DSO generally means faster cash collection, while a rising DSO can signal collection problems or looser credit terms.
Example
- With the default values shown above, this calculator returns: Days Sales Outstanding ≈ 45.6.
Frequently Asked Questions
What is a good DSO?
It varies significantly by industry, but generally, a DSO that closely matches or is lower than your standard credit payment terms (e.g. Net 30) is considered healthy.
Why does rising DSO matter?
A rising DSO trend can indicate customers are taking longer to pay, which ties up cash that could otherwise be used for operations or growth, and may signal a need to tighten credit policies.
