AR Aging & Collections Calculator
Analyze your receivables aging, estimate bad debt exposure, and see the cash flow impact of faster collections.
Slow collections tie up working capital and increase bad debt risk. The longer an invoice goes unpaid, the less likely you are to collect it. Our calculator helps you quantify the impact of your AR aging profile and prioritize collection efforts.
How It Works
Enter your receivables by aging bucket and payment history. We calculate your DSO, estimate bad debt exposure based on industry loss rates, and model the cash flow impact of improving collections.
Input Your Data
Total outstanding receivables
Percentage of AR in current bucket
Percentage of AR 31-60 days overdue
Percentage of AR 61-90 days overdue
Percentage of AR over 90 days overdue
Total annual revenue
Your Results
How We Calculate
DSO = (Accounts Receivable ÷ Annual Revenue) × 365. Bad Debt Estimate: Current 0.5%, 31-60 days 2%, 61-90 days 10%, 90+ days 25% loss rate.
Accelerate collections with automation
See how Nexus Collect automates follow-ups, prioritizes collection efforts, and reduces DSO.
Frequently Asked Questions
What is a good DSO?
A good DSO depends on your industry and payment terms. Generally, a DSO within 10-15 days of your standard terms is healthy. If your terms are Net 30 and DSO is 45+, there is a significant collections gap.
Why does AR aging matter?
The probability of collecting an invoice drops sharply as it ages. Industry data shows 90+ day invoices have only a 75% collection rate. Monitoring aging helps you act before accounts become uncollectible.
How does automation help reduce DSO?
Automated collections send timely reminders, escalate overdue accounts based on rules, provide self-service payment portals, and give your team visibility into which accounts need personal attention.
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