Days Sales Outstanding (DSO) Calculator
DSO shows how many days on average it takes customers to pay. Enter receivables and credit sales to also get BPDSO, delinquent days and CEI — the metrics CFOs track.
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Formula
DSO = Accounts Receivable / Credit Sales × Days; BPDSO = Current AR / Credit Sales × Days; CEI = Collections / (Beginning AR + Sales − Current AR)Frequently Asked Questions
How do you calculate DSO?
Divide ending accounts receivable by credit sales for the period and multiply by the number of days in the period. Example: 250,000 / 900,000 × 90 = 25 days.
What is a good DSO?
A DSO close to your payment terms is healthy. With net-30 terms, 30–45 days is generally good; above 45 suggests collection issues.
What is Best Possible DSO (BPDSO)?
BPDSO uses only current (not yet due) receivables. The gap between DSO and BPDSO equals days lost to late payments.
What is the Collection Effectiveness Index?
CEI measures how much of collectible receivables you actually collected in the period. Above 80% is good; close to 100% is excellent.
DSO monthly or annual?
Use 30 days for a monthly DSO, 90 for quarterly and 365 for annual — with the credit sales of that same period.