DSO & DPO Calculator — Days Outstanding + Cash Conversion Gap
Free DSO + DPO calculator. AR ÷ credit sales × 365 = DSO. AP ÷ COGS × 365 = DPO. The gap (DSO − DPO) is what you fund out of working capital.
DSO & DPO — Days Sales / Payables Outstanding
DSO (days to collect)
46 days
DPO (days to pay)
42 days
Cash conversion gap
4 days
Target DSO: under 45 days for most B2B; under 30 for B2C. Cash conversion gap = DSO − DPO. A 30+ day gap means you're funding your customers' cash flow out of your own pocket — every day of that gap costs working-capital interest.
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Calculate DSO, DPO and the cash-conversion gap
Enter receivables, payables, revenue and COGS to get your Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO) — plus the gap between them, which is what really drives your working-capital needs.
DSO vs DPO
- DSO — average days to collect cash from customers after a sale. Lower is better.
- DPO — average days you take to pay suppliers. Higher (within terms) keeps cash in your business longer.
- The gap — when DSO > DPO you're funding customers before suppliers pay you, which ties up cash.
Worked example
DSO = (Accounts Receivable ÷ Revenue) × 365; DPO = (Accounts Payable ÷ COGS) × 365. If you collect in 45 days but pay in 30, that 15-day gap has to be financed from working capital. Shortening DSO or extending DPO (without straining suppliers) frees up cash. Everything is computed in your browser.
How to use the DSO & DPO Calculator
Takes about a minute. No signup, no download, your data stays in your browser.
- 1Open the tool. Scroll up to the DSO & DPO Calculator above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the DSO & DPO Calculator.
What is DSO (Days Sales Outstanding)?
DSO is the average number of days it takes to collect payment after a sale: accounts receivable ÷ credit sales × 365. Lower is better for cash flow.
What is DPO (Days Payables Outstanding)?
DPO is the average number of days you take to pay suppliers: accounts payable ÷ COGS × 365. A higher DPO keeps cash in the business longer.
What is the cash conversion gap?
It’s DSO − DPO. A positive gap means you pay suppliers before customers pay you, so you fund the difference out of working capital.
Is a high DPO always good?
Paying later frees up cash, but stretching it too far can damage supplier relationships or forfeit early-payment discounts, so there’s a balance.
How do I reduce DSO?
Invoice promptly, tighten credit terms, offer easy payment methods, and follow up on overdue accounts systematically.
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