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DSO calculator (days sales outstanding)

Enter what clients owe you and what you invoiced in a period. See how long you wait to get paid on average and what faster payment is worth.

Everything clients owe you, due or not.

Often your payment terms, like 30 for net 30.

Days sales outstanding

36 days

Invoiced per day
$667
Cash freed at 30 days
$4,000

Estimate only. Nothing you type leaves your browser.

The formula

Days sales outstanding (DSO) is the money clients owe you divided by what you invoice per day. Owe $24,000 when you invoice $60,000 every 90 days, about $667 a day, and the money sitting with clients is 36 days of sales. It's an average: one very late invoice can hide behind many on-time ones, so look at your open invoices too.

Compare it with your terms

On net 30 terms, a DSO near 30 is healthy. Every day above it is cash you've earned and can't use. The calculator shows how much would be freed at your target.

Bringing it down

  • Invoice the day the work is delivered, not at the end of the month.
  • Ask for a deposit before you start.
  • Put a card payment link on every invoice.
  • Send a reminder before the due date, not only after.

An early payment discount also works, but it's expensive.

IN SHORT

DSO = unpaid invoices ÷ invoiced in the period x days in the period. If clients owe you $24,000 and you invoiced $60,000 in the last 90 days, your DSO is 36 days. Bringing it down to 30 frees about $4,000 in cash. For a freelancer, a DSO well above your payment terms means invoices are going late.

Prices and limits as of .

Questions

What is a good DSO?
Close to your payment terms. With net 30 terms, a DSO around 30 means clients pay on time. A DSO of 45 means the average invoice is two weeks late.
Which period should I use?
90 days evens out one big invoice. Use 365 days for a yearly view, or 30 days if you invoice often and want a quick check.
How do I lower my DSO?
Invoice the day the work is done, take a deposit up front, put a card payment link on every invoice and send a reminder before the due date. A late fee in your terms helps with slow payers.

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Invoicing in SoloWOS shows every open invoice by client and due date, and sends reminders to late payers for you. 14 days free, no card needed · Then Basic for $2/month.