DSO Calculator (Days Sales Outstanding)
Divide accounts receivable by revenue and scale to a year to find days sales outstanding, the average time to collect a sale.
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- No sign-up
Enter receivables and revenue to see days sales outstanding.
Worked example
With these example inputs:
- Accounts receivable$120,000
- Revenue$900,000
Days sales outstanding: 48.67
- Turns per year7.50
- If the first figure were 10% higher53.53
Frequently asked questions
How is DSO calculated?
Divide accounts receivable by revenue, then multiply by 365. $120,000 of receivables on $900,000 of revenue is about 49 days.
What is a good DSO?
Lower is generally better, meaning cash arrives faster. Compare it with your payment terms: a DSO well above net-30 hints at slow-paying customers.