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Accounts Payable Turnover Calculator

Work out accounts payable turnover instantly with clear inputs, formula shown and shareable results.

About Accounts Payable Turnover Calculator

Days payable outstanding measures how long you take to pay suppliers. It is free financing while it lasts, but stretching it past agreed terms costs goodwill, forfeits early-payment discounts and eventually shows up in the prices you are quoted.

Formulas

Payables turnover

Turnover = Credit purchases / Average payables

DPO

DPO = Days in period / Payables turnover

Worked example

With the default values below, Accounts Payable Turnover Calculator returns Days payable outstanding of 45.6. Change any input above and every figure here is recalculated in your browser.

Inputs used

Credit purchases for the period
3,200,000
Opening trade payables
380,000
Closing trade payables
420,000
Days in the period
365

Results

Days payable outstanding
45.6
Payables turnover (times)
8.00
Average payables
$400,000.00
Credit purchases per day
$8,767.12

Step by step

  1. 1Values used
  2. 2Payables turnover
  3. 3DPO
  4. 4Days payable outstanding= 45.6
  5. 5Payables turnover (times)= 8.00
  6. 6Average payables= 400,000.00
  7. 7Credit purchases per day= 8,767.12

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should I use COGS instead of purchases?

Purchases is more accurate. COGS is an acceptable proxy when purchase data is unavailable and inventory is stable.

Is a high DPO good?

Only within terms. Beyond that it is unauthorised borrowing from suppliers and a common early warning sign of distress.

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