DSO calculator
Days sales outstanding (DSO) is the average number of days it takes to get paid after you invoice. Enter your accounts receivable and your credit sales for the period to see your DSO, how it compares with your terms and how much cash you'd free up by getting paid on time.
How it's calculated
DSO = accounts receivable ÷ credit sales in the period × the number of days in the period. Days beyond terms is DSO minus your payment terms; the cash you'd free up is those extra days × your average daily sales.
Questions
What is a good DSO?
It depends on your terms. A DSO within about 1.3 times your payment terms is generally considered healthy: under about 39 days on Net 30 terms.
How do I lower my DSO?
Invoice the day the work is done, put a clear due date on the invoice, make paying easy, send a reminder before the due date and follow up on every late invoice without gaps.
What's the difference between DSO and average days late?
DSO measures the whole time from invoice to payment across all your sales. Average days late counts only the time after the due date.
Get paid without chasing
Casey is an AI accounts receivable assistant. It sends your invoices, reminds clients before the due date and follows up after it by email, text, WhatsApp or phone until you're paid. It's free when clients pay on time. See how it works or read our guides on getting paid faster.
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