Days Sales Outstanding (DSO) / Accounts Receivable Aging Calculator
Measure how fast your business collects payments and optimize your cash flow. Calculate DSO and visualize your receivables aging breakdown.
Aging Receivables Breakdown (Optional)
Enter your metrics and click calculate to see results
What Is Days Sales Outstanding (DSO)?
DSO shows the average number of days it takes your company to collect cash from customers after a sale. Lower DSO = faster cash flow.
🧮 DSO Formula Example
If total credit sales = $120,000 and average receivables = $20,000 over 30 days:
💡 Why DSO Matters
Cash Flow Health
Indicates liquidity and working capital efficiency
Late Payment Detection
Helps identify customers with payment issues
Forecasting
Improves cash flow predictions and planning
Credit Terms
Influences supplier relationships and credit limits
📊 AR Aging Table Example
| Age Range | Amount | % of Total |
|---|---|---|
| 0–30 days | $60,000 | 60% |
| 31–60 days | $25,000 | 25% |
| 61–90 days | $10,000 | 10% |
| 90+ days | $5,000 | 5% |
⚙️ Tips to Reduce DSO
Early Payment Discounts
Offer 2% discount for payments within 10 days
Automated Reminders
Set up automated email reminders for overdue invoices
Late Payment Penalties
Enforce consistent late fees and interest charges
Customer Vetting
Improve credit checks and payment terms screening