DSO Calculator · Days Sales Outstanding
DSO (Days Sales Outstanding) is the average number of days it takes to collect a credit sale. The lower the number, the faster you get paid and the healthier your cash flow. Just fill in the three figures below.
- Average daily sales0
- Equivalent to0 months of receivables
What is DSO, and what's a good number?
DSO measures how long, on average, it takes to get paid after invoicing. It's a direct read on cash-flow health: the lower the DSO, the faster cash comes back.
- ≤ 45 days: healthy, prompt collection.
- 45–60 days: okay, but room to improve.
- > 60 days: high — cash is tied up, chasing needs to step up.
A fair benchmark also depends on your terms: if you give clients 30-day terms, a DSO of 30–40 is perfectly normal. Want to bring it down? Put a reminder cadence in place.
FAQ
What is the DSO formula?
DSO = (accounts receivable ÷ credit sales) × number of days in the period. Use 30 for a month, 90 for a quarter, 365 for a year.
What is a good DSO?
Roughly: 45 days or under is healthy, 45–60 is okay with room to improve, and over 60 is high. A fair benchmark also depends on the payment terms you offer.
How do I lower DSO?
Invoice promptly and accurately, set clear payment terms, send reminders before and after the due date, and chase overdue invoices on a consistent schedule.