Days Sales Outstanding Calculator
Revenue recognised, cash not received.
Days sales outstanding
30 days
$55 released at 30 days
Every day of DSO ties up $932. Collections rarely get management attention because the revenue is already recognised — but the cash is not, and the carrying cost of $3,360 a year is real money.
How the Days Sales Outstanding Calculator works
Collections rarely get management attention because the revenue is already recognised. The cash is not, and the carrying cost of financing those receivables is real money that appears nowhere on the profit and loss.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is DSO calculated?
Average receivables divided by annual credit revenue, times 365. It measures how long customers take to pay.
What is a good DSO?
Close to your stated terms. A DSO of 45 days on 30-day terms means half your customers are late, which is normal and still worth addressing.
How do I reduce it?
Invoice immediately, chase before the due date rather than after it, offer an early payment discount, and make paying easy. Most late payment is administrative rather than deliberate.
Does this apply to consumer ecommerce?
Barely — consumers pay at checkout. It matters for wholesale, B2B and any channel with credit terms, where it is often the largest single component of the cash cycle.