Average days to collect payment. The Days Sales Outstanding (DSO) Calculator takes accounts receivable, credit sales for the period, days in the period and returns days sales outstanding plus sales per day. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Days Sales Outstanding (DSO) Calculator works
The average number of days between invoicing and getting paid. Every extra day of DSO ties up one day of sales in unpaid invoices.
Worked example
With the example values (accounts receivable of $120,000, credit sales for the period of $1,200,000, days in the period of 365 days), the days sales outstanding is 36 days; sales per day $3,287.67. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is days sales outstanding calculated?
DSO = accounts receivable ÷ credit sales × days in period.
Which figures do I need?
Accounts receivable, credit sales for the period, days in the period. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
