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Receivables & Sales Collection Days Calculator

Estimate days sales outstanding from average receivables and period sales.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Receivables opening at 10,000 and closing at 20,000 average 15,000. With sales of 90,000 over 360 days, the modeled collection period is 60 days.

DSO = average receivables ÷ period sales × days in period

Worked example

Enter these known values and leave the other values blank.

Beginning accounts receivable
10000 USD
End accounts receivable
20000 USD
Sales for the same period
90000 USD
Accounting period
360 days
Average receivables
15000 USD
Days sales outstanding (DSO)
60 days

Assumptions and limitations

  • Credit sales align with trade receivables. Using total sales when cash sales are material changes the measure. State the chosen denominator, match the accounting period and consider seasonal changes in receivables.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Should I use credit sales or all sales?

Credit sales align with trade receivables. Using total sales when cash sales are material changes the measure. State the chosen denominator, match the accounting period and consider seasonal changes in receivables.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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