Days Sales Outstanding Calculator
Convert receivables into the average number of days customers take to pay.
About Days Sales Outstanding Calculator
Dividing a balance-sheet stock by the daily flow that passes through it converts money into days. The turns figure is the same relationship inverted: how many times the balance is replaced over the period. Days measures are directly comparable across businesses of any size, and each day removed from the collection cycle releases cash without needing new financing.
Formula
Days Sales Outstanding
Days Sales Outstanding = Accounts receivable ÷ Annual revenue × days in period
- Accounts receivable
- Balance sitting on the balance sheet
- Annual revenue
- Flow through the income statement over the period
Worked example
With the default values below, Days Sales Outstanding Calculator returns Days Sales Outstanding of 45.6. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Accounts receivableminimum 0
- 150,000
- Annual revenueminimum 0
- 1,200,000
- Days in the periodaccepts 1–366 days
- 365 days
Results
- Days Sales Outstanding
- 45.6 days
- Turns per Period
- 8.00
- Average Daily Flow
- $3,287.67
- Days Sales Outstanding
- 6.52 weeks
- Days Sales Outstanding
- 1.50 months
Step by step
- 1Values used
- 2Days Sales Outstanding
- 3Days Sales Outstanding= 45.6 days
- 4Turns per Period= 8.00
- 5Average Daily Flow= 3,287.67
- 6Days Sales Outstanding= 6.52 weeks
- 7Days Sales Outstanding= 1.50 months
Assumptions and limits
- The result is derived only from the 3 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
How is Days Sales Outstanding calculated?
Days Sales Outstanding = Accounts receivable ÷ Annual revenue × days in period Dividing a balance-sheet stock by the daily flow that passes through it converts money into days. The turns figure is the same relationship inverted: how many times the balance is replaced over the period.
Why does Days Sales Outstanding matter?
Days measures are directly comparable across businesses of any size, and each day removed from the collection cycle releases cash without needing new financing.
What values do I need to enter?
This calculator takes 3 inputs: Accounts receivable, Annual revenue, Days in the period. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.