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.
Inputs explained
| Field | What to enter |
|---|---|
| Receivables figure | Choose one: Single balance, Average of opening and closing |
| Accounts receivable | Amount in your currency |
| Opening receivables | Amount in your currency |
| Closing receivables | Amount in your currency |
| Net credit sales in the period | Amount in your currency |
| Days in the period | A number |
| Credit terms | In 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 receivable | A/R days (days) |
|---|---|
| 45,000 | 45.6 |
| 67,500 | 45.6 |
| 90,000 | 45.6 |
| 112,500 | 45.6 |
| 135,000 | 45.6 |
| 180,000 | 45.6 |
Formula
A/R days = accounts receivable ÷ net credit sales × days in period
Average receivables = (opening + closing) ÷ 2
Worked example
Inputs: Receivables figure: Average of opening and closing; 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 ×.
Frequently asked questions
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.