Days sales outstanding (DSO)
How many days, on average, your customers take to pay you.
How it works
DSO = receivables / revenue incl. VAT × days. In the EU the default B2B payment term is 30 days (generally 60 at most).
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Accounts receivable (unpaid invoices)85000
- Revenue incl. VAT over the period540000
- Period length (days)365
you get:
- Days sales outstanding57 days
- Average sales per day€1,479.45
- Cash freed if DSO = 30 days€40,616.44
- LevelNormal
Frequently asked questions
How does the “Days sales outstanding” tool work?
DSO = receivables / revenue incl. VAT × days. In the EU the default B2B payment term is 30 days (generally 60 at most).
What do I need to enter?
Just fill in: accounts receivable, revenue incl. vat over the period, period length. The result updates as you type.
Can you give an example?
Accounts receivable (unpaid invoices): 85000; Revenue incl. VAT over the period: 540000; Period length (days): 365 → Days sales outstanding: 57 days; Average sales per day: €1,479.45.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.