Accounts Receivable Aging Calculator
Analyze AR aging buckets and calculate days sales outstanding (DSO).
About this calculator
This calculator breaks a total accounts receivable balance into four aging buckets -- current (0-30 days), 31-60, 61-90, and 90+ days past due -- and derives Days Sales Outstanding (DSO), an Estimated Bad Debt Allowance, and the AR Turnover ratio. DSO divides Total AR Balance by average daily sales (Annual Revenue / 365); it moves with Total AR and Annual Revenue but is computed independently of the four buckets themselves, so entering different bucket amounts without changing the total balance doesn't move DSO at all. The four percentage outputs (Current %, 31-60 Days %, etc.) are each that bucket's share of Total AR Balance -- both the bucket amount and Total AR move each percentage by roughly the same magnitude, since a percentage is a symmetric ratio of the two.
Estimated Bad Debt Allowance applies progressively higher risk weights the older a bucket gets (1% current, 5% for 31-60 days, 15% for 61-90 days, 35% for 90+ days), which is why the 90+ bucket is the single biggest lever on that output even though the current bucket usually holds a larger dollar balance -- the 35% weight outweighs the balance difference. AR Turnover is Annual Revenue divided by Total AR, the standard measure of how many times receivables convert to cash per year. This model doesn't verify that the four buckets actually sum to Total AR Balance -- any shortfall is reported separately as Uncategorized AR rather than silently absorbed into one of the buckets.
Tax Disclaimer
This calculator provides estimates based on general tax rules and may not reflect your specific situation. Tax laws vary by jurisdiction and change frequently. Consult a qualified tax professional or CPA for advice tailored to your circumstances.
Inputs
Results
Days Sales Outstanding
36.5 days
How to Use This Calculator
- Enter your total accounts receivable balance.
- Break out the balance into aging buckets: current (0–30 days), 31–60, 61–90, and 90+ days past due.
- Review the aging percentages and the weighted average days outstanding.
- Compare the 90+ day bucket against your reserve for doubtful accounts.
- Use the output to prioritize collection calls — start with the largest overdue balances.
How the result changes with Annual Revenue
| Annual Revenue | Days Sales Outstanding |
|---|---|
| $2,500,000.00 | 73 days |
| $3,750,000.00 | 48.7 days |
| $7,500,000.00 | 24.3 days |
| $12,500,000.00 | 14.6 days |
What each input means
- Total AR Balance
- Total outstanding accounts receivable balance.
- Current (0-30 days)
- AR balance within payment terms.
- 31-60 Days Past Due
- AR balance 31-60 days past due.
- 61-90 Days Past Due
- AR balance 61-90 days past due.
- 90+ Days Past Due
- AR balance over 90 days past due.
- Annual Revenue
- Total annual credit sales revenue.
What each result means
- Uncategorized AR
- Total AR Balance minus the four aging buckets -- any amount not yet assigned to a bucket.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersTotal AR Balance = 500000, Current (0-30 days) = 250000, 31-60 Days Past Due = 120000, 61-90 Days Past Due = 80000 = 6 input(s) provided
- Calculate Days Sales OutstandingDays Sales Outstanding36.5 = 36.5
- Calculate Current %50 = 50
- Calculate 31-60 Days %24 = 24
Engine last updated . Checked against 1 independently-derived test — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.
Frequently Asked Questions
Why doesn't changing the aging buckets move Days Sales Outstanding?
DSO is calculated directly from Total AR Balance and Annual Revenue (Total AR / (Annual Revenue / 365)) -- it never reads the four aging buckets. Moving dollars between Current, 31-60, 61-90, and 90+ Days Past Due without changing Total AR Balance leaves DSO completely unchanged, even though it clearly should matter which bucket the receivables sit in from a collections-risk standpoint.
Why is the 90+ day bucket the biggest driver of the bad debt estimate?
Estimated Bad Debt Allowance applies a different risk weight per bucket: 1% for current, 5% for 31-60 days, 15% for 61-90 days, and 35% for 90+ days past due. Even when the current bucket holds a larger dollar balance, that 35x-higher weight on the oldest bucket makes a dollar shifted into 90+ days move the bad debt estimate more than a dollar shifted into any other bucket.
What does the Uncategorized AR figure mean?
It's Total AR Balance minus the sum of the four aging buckets you entered, floored at zero. If your four buckets don't add up to the total balance -- because you're missing a bucket or entered a stale total -- this shows the gap so you can reconcile it, rather than the calculator silently assuming the buckets are complete.
How is AR Turnover different from Days Sales Outstanding?
AR Turnover (Annual Revenue / Total AR) counts how many times receivables are collected and replaced over a year -- a higher number means faster collection. DSO (Total AR / average daily sales) instead measures the average number of days it takes to collect, so the two move in opposite directions: raising Total AR while holding revenue fixed raises DSO but lowers AR Turnover.
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