DSO calculator
Days Sales Outstanding = (Accounts Receivable ÷ Total Credit Sales) × Days in period. Enter your numbers below to calculate it — the calculator runs in your browser and sends nothing anywhere.
Published August 19, 2026 · Updated August 19, 2026
How to read the result
DSO tells you how many days of sales are, on average, tied up in receivables. Compare it to your payment terms rather than to an absolute number: on Net 30 terms, a DSO of 38 means customers pay about a week late on average; a DSO of 55 means your working capital is financing your customers for nearly a month beyond terms. Track it monthly — the trend matters more than any single reading.
FAQ
What is DSO?
Days Sales Outstanding (DSO) is the average number of days it takes a company to collect payment after a credit sale. The standard formula is (Accounts Receivable ÷ Total Credit Sales) × Number of Days in the period.
What is a good DSO?
It depends on your payment terms. A common rule of thumb is that DSO within 1.3× of your stated terms is healthy — for Net 30 terms, a DSO under about 40 days. B2B medians vary widely by industry, from the low 30s to over 60 days.
How do I reduce DSO?
The highest-leverage steps are: invoice immediately and accurately, confirm the invoice was received and approved before the due date, resolve blockers (PO mismatches, missing documents, wrong recipients) rather than only sending reminders, make payment easy, and track promises to pay through to cash.