DSO Calculator

Compute days sales outstanding (DSO) from accounts receivable, net credit sales, and the period in days.

800.7K uses Updated · 2026-05-14 Runs locally · zero upload
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The DSO Calculator measures how long, on average, it takes a company to collect payment after a credit sale. Combined with AR turnover, DSO is a core working-capital and cash-flow indicator. Use the preset periods (30, 90, 365 days) or supply a custom value.

How to Use DSO Calculator

  1. Enter accounts receivable from the balance sheet.
  2. Enter net credit sales for the period.
  3. Pick the period in days or enter a custom value.
  4. Review DSO, AR turnover ratio, and calculation steps.

Formula & Theory - DSO Calculator

DSO = (Accounts Receivable / Net Credit Sales) × days
AR turnover = Net Credit Sales / Accounts Receivable

Use Cases for DSO Calculator

  • Diagnose collection efficiency.
  • Benchmark DSO against industry peers.
  • Monitor changes in credit policy over time.
  • Feed cash-flow forecasts with realistic collection timing.

Frequently asked questions about DSO Calculator

What counts as a good DSO?

Generally lower is better, but it depends on the industry and credit terms offered. Compare with peers and your own historical trend.

Should I use gross or net credit sales?

Use net credit sales (gross sales minus returns and allowances) for a more accurate measure of collectible balances.

Why is AR turnover the reciprocal of DSO?

Both describe the same relationship; turnover is how many times AR cycles per period, while DSO converts that into average days.

Is my data stored?

No. All inputs remain in your browser.