Accounts Receivable Days Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 27, 2026
Disclaimer: This calculator is provided for informational and educational purposes only and does not constitute financial, medical, legal, or other professional advice. Always consult a qualified professional before making decisions based on these results.
How long money sits uncollected
Days Sales Outstanding measures the average time between making a credit sale and actually collecting payment for it - a rising DSO trend can signal slowing collections even while total sales figures still look strong.
Worked example
For $50,000 in accounts receivable against $600,000 in annual credit sales:
DSO = (50000 / 600000) x 365 = 30.42 days
Comparing DSO against your standard invoice payment terms (like "net 30") shows whether customers are generally paying on time or consistently running late - a DSO meaningfully higher than your stated terms is worth investigating.