Quick answer
Days sales outstanding (DSO) = accounts receivable ÷ revenue × days in the period. $80,000 receivable on $600,000 of revenue over 365 days is 48.67 days.
Enter accounts receivable, revenue and days. The calculator returns the average days taken to collect payment.
Related tools: Accounts Payable Days Calculator: Days payable outstanding. Return on Equity Calculator: Net income relative to average shareholders' equity. Cash Conversion Cycle Calculator: Days to turn inventory into cash.
How to use the Accounts Receivable Days Calculator
- Enter accounts receivable ($) (0 or more).
- Enter revenue ($) (above 0).
- Enter days in period (between 0 and 366). It starts at 365.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Accounts receivable | A number, in $ | ≥ 0 |
| Revenue | A number, in $ | > 0 |
| Days in period | A number | > 0, ≤ 366, starts at 365 |
Formula and method
Formula
DSO = accounts receivable ÷ revenue × days
IEEE-754 double precision; shown to the decimals indicated.
Use credit sales if cash sales are significant.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Accounts receivable = 80000; Revenue = 600000; Days in period = 365.
| Result | Value |
|---|---|
| Days sales outstanding | 48.67 days |
Example 2
Inputs: Accounts receivable = 15000; Revenue = 200000; Days in period = 90.
| Result | Value |
|---|---|
| Days sales outstanding | 6.75 days |
The first line is the headline result (days sales outstanding). IEEE-754 double precision; shown to the decimals indicated.
Interpreting DSO
A DSO of 48.67 means the business waits about 49 days on average for customers to pay. If payment terms are 30 days, a figure well above that points to slow collection. A falling DSO releases cash.
Caveats
Seasonal or fast-growing sales distort the figure, because year-end receivables reflect recent, larger sales. Using credit sales rather than total revenue gives a cleaner result if cash sales are significant.
How the result changes with accounts receivable
Holding every other input at the first worked example, this table changes only accounts receivable. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Accounts receivable | Days sales outstanding |
|---|---|
| 40000 | 24.33 days |
| 80000 | 48.67 days |
| 160000 | 97.33 days |
| 320000 | 194.67 days |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Revenue: entering "0" shows "Revenue must be greater than 0." beside that field and no result.
- Accounts receivable: left empty shows "Enter accounts receivable." beside that field and no result.
Choosing between the Accounts Receivable Days Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Accounts Payable Days Calculator](/business/accounts-payable-days-calculator/) | accounts payable, cost of goods sold and days in period | Days payable |
| [Return on Equity Calculator](/business/return-on-equity-calculator/) | net income, equity at start and equity at end | Return on equity |
| [Cash Conversion Cycle Calculator](/business/cash-conversion-cycle-calculator/) | days inventory outstanding, days sales outstanding and days payable outstanding | Cash conversion cycle |
| [Current Ratio Calculator](/business/current-ratio-calculator/) | current assets and current liabilities | Current ratio |
| [Employee Turnover Calculator](/business/employee-turnover-calculator/) | separations and average number of employees | Turnover rate |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Revenue must be positive
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for revenue and accounts receivable to confirm this.
Frequently asked questions
What is a good DSO?
Close to your payment terms; below 45 is common for many sectors.
Does revenue include cash sales?
Use credit sales for accuracy where you can.
How can DSO be reduced?
Invoice promptly, follow up overdue accounts and offer early-payment discounts.
What does the Accounts Receivable Days Calculator calculate?
Days sales outstanding. It returns Days sales outstanding.
What formula does the Accounts Receivable Days Calculator use?
DSO = accounts receivable ÷ revenue × days. Use credit sales if cash sales are significant.
What do I need to enter in the accounts Receivable Days Calculator?
You enter Accounts receivable ($), Revenue ($) and Days in period.
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Revenue must be positive.
What is an example of a accounts Receivable Days result?
With accounts receivable 80000, revenue 600000 and days in period 365, the days sales outstanding is 48.67 days.
Where does the method come from?
The method follows: OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University): receivables turnover and days sales outstanding.
Related calculators
- Accounts Payable Days Calculator — Days payable outstanding.
- Return on Equity Calculator — Net income relative to average shareholders' equity.
- Cash Conversion Cycle Calculator — Days to turn inventory into cash.
- Current Ratio Calculator — Current ratio from current assets and current liabilities.
- Employee Turnover Calculator — Turnover rate from separations and average number of employees.
- Market Share Calculator — Market share from your sales and total market sales.
- Payment Processing Fee Calculator — Fee on a payment from a percentage and fixed charge you enter.
- Working Capital Calculator — Current assets minus current liabilities.
- Sales Quota Attainment Calculator — Percent of quota achieved.
Sources
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University): receivables turnover and days sales outstanding
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.