Accounts receivable days
Divide average receivables by credit sales, then multiply by days in the period.
How this works
Average collection days = average accounts receivable ÷ credit sales during the period × days in that period. Enter receivables and sales for the same period and use credit sales rather than total sales if cash sales are excluded from receivables.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults give $20,000/$180,000 × 365 days. With all reset-default inputs, average collection days: 40.56.
- Average accounts receivable ($)
- 20000
- Credit sales during period ($)
- 180000
- Days in period
- 365
- Average collection days
- 40.56
Scope and assumptions
This is an aggregate ratio, not the actual age or expected payment date of any invoice. The calculator does not derive average receivables, separate overdue balances or adjust for seasonality and bad debts. Period length must be a whole number from 1 to 366 days.
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