DSO calculator
Find out how many days it takes you to get paid — and how much working capital a faster cycle would free up.
Your days sales outstanding
45.0 days
- Average credit sales per day
- ₹1,00,000
- Reduction to reach target
- 15.0 days
- Cash released at target DSO
- ₹15,00,000
- Yearly interest saved on that cash
- ₹1,80,000
DSO = receivables ÷ credit sales × days in period. Cash released = daily credit sales × days saved. Interest saved assumes the released cash repays borrowing at the rate you entered.
Reading your result
Compare your DSO with the credit period on your invoices. The gap between the two is how late customers pay on average, and it is the part a better follow-up process can shrink.
Indian micro and small suppliers have a statutory backstop: buyers must pay within 45 days of acceptance. If your DSO is well above 45, read the 45-day payment rule guide.
Frequently asked questions
What is DSO?
Days sales outstanding is the average number of days it takes to collect payment after a credit sale. It is calculated as accounts receivable divided by credit sales, multiplied by the number of days in the period.
What is a good DSO?
It depends on the credit terms you offer. A useful benchmark is your average credit period: if you give 30-day terms and your DSO is 55, customers are paying about 25 days late on average.
How can I reduce DSO?
Invoice promptly, agree credit terms in writing, remind customers before the due date rather than after, make paying easy with a payment link, and follow up consistently on every overdue invoice.