# A/R Days Calculator (Days Sales Outstanding)

URL: https://speedycalculator.com/calculators/finance/ar-days/
Last updated: 2026-10-25

> The A/R days calculator works out how many days on average it takes your customers to pay their invoices, from accounts receivable (or the average of opening and closing receivables) and net credit sales for the period.

## Inputs

- Receivables figure
- Accounts receivable
- Opening receivables
- Closing receivables
- Net credit sales in the period
- Days in the period
- Credit terms (days)

## Results

- Receivables used
- A/R days
- Days beyond terms
- Receivables turnover

## Formula

```
A/R days = accounts receivable ÷ net credit sales × days in period
Average receivables = (opening + closing) ÷ 2
```

## Explanation

A/R days (also called days sales outstanding) measures how fast you collect cash. Comparing it with your payment terms shows whether customers pay on time: 45 A/R days against 30-day terms means many invoices are paid late.

### How to use the A/R Days Calculator

- **Receivables figure**
- **Accounts receivable**
- **Opening receivables**
- **Closing receivables**
- **Net credit sales in the period**
- **Days in the period**
- **Credit terms**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter receivables (or opening and closing balances), net credit sales and the number of days in the period, plus your standard credit terms.

### Tips

- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.

### Common mistakes to avoid

- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.

### Inputs explained

FieldWhat to enterReceivables figureChoose one: Single balance, Average of opening and closingAccounts receivableAmount in your currencyOpening receivablesAmount in your currencyClosing receivablesAmount in your currencyNet credit sales in the periodAmount in your currencyDays in the periodA numberCredit termsIn days

### What each result means

- **A/R days** = [Receivables used]÷[Net credit sales in the period]×[Days in the period]
- **Days beyond terms** = [A÷R days] - [Credit terms]
- **Receivables turnover** = [Net credit sales in the period]÷[Receivables used]

### Example values

How the main result changes when **Accounts receivable** changes and everything else stays at the example values above:

Accounts receivableA/R days (days)45,00045.667,50045.690,00045.6112,50045.6135,00045.6180,00045.6

## Worked example

Inputs — Receivables figure: Average of opening and closing; Accounts receivable: $90,000; Opening receivables: $80,000; Closing receivables: $100,000; Net credit sales in the period: $720,000; Days in the period: 365; Credit terms: 30 days.

Results — Receivables used = $90,000.00; **A/R days = 45.6 days**; Days beyond terms = 15.6 days; Receivables turnover = 8 ×.

## FAQ

**What is a good A/R days figure?**
Close to or below your payment terms – under about 45 days is common for 30-day terms.

**Why use average receivables?**
It smooths out seasonal swings at the start and end of the period.

**How can I reduce A/R days?**
Invoice promptly, offer early-payment discounts and follow up overdue accounts.

**What formula does the A/R Days Calculator use?**
A/R days = accounts receivable ÷ net credit sales × days in period.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)