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Accounts Receivable Turnover Calculator

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

About Accounts Receivable Turnover Calculator

Receivables turnover is credit sales divided by average receivables — how many times a year the debtor book is collected. Dividing the days in the period by turnover converts it into DSO, the figure credit control teams manage against agreed terms.

Formulas

Receivables turnover

Turnover = Net credit sales / Average receivables

DSO

DSO = Days in period / Receivables turnover

Worked example

With the default values below, Accounts Receivable Turnover Calculator returns Receivables turnover (times) of 8.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net credit sales for the period
4,800,000
Opening trade receivables
560,000
Closing trade receivables
640,000
Days in the period
365

Results

Receivables turnover (times)
8.00
Days sales outstanding
45.6
Average receivables
$600,000.00
Credit sales per day
$13,150.68

Step by step

  1. 1Values used
  2. 2Receivables turnover
  3. 3DSO
  4. 4Receivables turnover (times)= 8.00
  5. 5Days sales outstanding= 45.6
  6. 6Average receivables= 600,000.00
  7. 7Credit sales per day= 13,150.68

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 cash sales be excluded?

Yes. Including cash sales inflates turnover and understates DSO, hiding genuine collection problems.

What if DSO exceeds my payment terms?

The gap is your collection lag. A DSO of 45 days on 30-day terms means roughly 15 days of sales are overdue at any moment.

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