Days sales outstanding calculator
Days sales outstanding (DSO) estimates how long customers take to pay: DSO = accounts receivable ÷ credit sales × days in the period. Comparing DSO with your stated payment terms shows how far collections run late on average.
Your inputs
Enter accounts receivable, credit sales for the period, days in the period to see the result.
Inputs
- Accounts receivable
- Credit sales
- Days in period
- Payment terms
- Optional.
Outputs
- DSO
- DSO
- Days beyond terms
- Days beyond terms
How it is calculated
DSO = accounts receivable ÷ credit sales × days in period
Worked example (illustrative)
Illustrative only: $100,000 of receivables on $1,200,000 of credit sales over 360 days gives a DSO of 30 days.
Assumptions and limitations
- Uses an average; it does not replace an aging report.
- Seasonal sales distort a single-period DSO.
- Use credit sales only; cash sales understate DSO.
Questions and answers
What is a good DSO?
Close to your payment terms. Industry norms vary.
Why does DSO matter in diligence?
Rising DSO can signal collection problems or aggressive revenue recognition.
Should I use average receivables?
An average of opening and closing balances smooths timing effects.
How do I lower DSO?
Invoice promptly, follow up on aging items and review credit terms.
Sources
Content reviewed October 9, 2026 by the SourceX Partnerships Team. Results are calculated in your browser; nothing you type is stored.