Days Sales Outstanding Calculator
Estimate average collection period for receivables.
Days Sales Outstanding measurements
Enter your values, then calculate.
Result
How to calculate days sales outstanding
Days Sales Outstanding (DSO) measures the average number of days it takes to collect payment after a credit sale.
How the calculation works
DSO = (Average accounts receivable ÷ Annual credit sales) × Days in period.
Example
$120,000 receivables against $1,460,000 annual credit sales, over 365 days: (120,000÷1,460,000)×365 = 30 days.
Frequently asked questions
How is Result calculated?
Result = [Average accounts receivable] ÷ [Annual credit sales] × [Days in period].
Is the Days Sales Outstanding Calculator free to use?
Yes — every calculator on Simple Calculator Tools is free, runs in your browser, and does not require an account.
Days Sales Outstanding Calculator
DSO = (Average accounts receivable ÷ Annual credit sales) × Days in period.
Let's understand your days sales outstanding result.
Calculate a result above and this guide will help you interpret it using this calculator's own formula and explanation.
Pro Tips for Days Sales Outstanding
- Compare DSO against your stated payment terms to see if customers are paying on time.
- A rising DSO trend can be an early warning sign of collection issues or looser credit policies worth investigating.
Common Days Sales Outstanding Mistakes to Avoid
- Including cash sales in the credit sales figure, which should reflect only sales made on credit terms.
When to Use This Calculator
Days Sales Outstanding (DSO) measures the average number of days it takes to collect payment after a credit sale.