MinrosDSO Calculator
Find out how many days, on average, it takes your business to collect payment after a sale. Enter your numbers below -- the result updates as you type.
Your total unpaid invoices right now.
Sales made on credit over this period (exclude cash sales).
Enter your numbers above to see your DSO.
What is a good DSO ratio?
A good Days Sales Outstanding (DSO) ratio is under 30 to 45 days for businesses operating on standard Net-30 payment terms, or within 10 to 15% of your stated credit terms. A DSO above 45 days signals trapped working capital and overdue invoices.
What is DSO (Days Sales Outstanding)?
DSO measures the average number of days it takes your business to collect payment after a sale is made on credit. It's one of the clearest signals of how healthy your operational cash flow actually is — a low DSO means cash is converting close to invoice terms; a high and rising DSO means your earned revenue is sitting as unpaid receivables instead of liquid working capital in the bank.
How to Calculate DSO: The Standard Formula & Worked Example
DSO = (Accounts Receivable ÷ Total Credit Sales) × Number of Days
Accounts Receivable is your total outstanding (unpaid) invoice balance at the end of the period. Total Credit Sales is the revenue billed on credit terms (Net-15, Net-30, Net-60) over the 30-, 90-, or 365-day window — immediate cash sales are excluded because they never enter Accounts Receivable.
($42,000 ÷ $180,000) × 90 days = 21.0 days DSO (Excellent cash velocity on Net-30 terms).Industry-Specific DSO Benchmarks (Net-30 Comparison)
Because payment cycles vary by sector, comparing your DSO against businesses with similar billing structures is essential. Below are typical B2B benchmarks alongside the target DSO achieved with automated invoice follow-up:
| Industry Vertical | Typical Credit Terms | Industry Median DSO | Automated AR Target |
|---|---|---|---|
| B2B SaaS & Cloud Software | Net-15 to Net-30 | 32 – 42 days | Under 24 days |
| Professional Services, Agencies & Consulting | Net-15 to Net-30 | 38 – 51 days | Under 28 days |
| Wholesale & B2B Distribution | Net-30 | 42 – 55 days | Under 34 days |
| Light Manufacturing & Custom Production | Net-30 to Net-45 | 46 – 62 days | Under 38 days |
| Construction, Field Services & Specialty Trades | Net-30 to Net-60 | 54 – 75 days | Under 45 days |
Why DSO Creeps Up — and How AR Automation Compresses It
- No consistent days-late follow-up. Invoices get sent and forgotten until someone notices the balance is 45+ days old — by then, the customer has deprioritized payment.
- Payment friction on overdue reminders. Sending a plain text email that forces the client to hunt for a PDF invoice or mail a check adds 7–14 days to every collection cycle.
- Unresolved billing disputes sitting silent. A disputed invoice often stops getting tracked entirely, quietly aging into the 60+ or 90+ day bucket.
- No real-time visibility into aging buckets. Without a live five-bucket aging summary, high-balance accounts slip past credit limits unnoticed.
Minros AR connects directly to QuickBooks Online, Zoho Books, and FreshBooks to automate the entire collection cadence — triggering personalized reminders by exact days late, embedding a 1-click Stripe customer payment portal, pausing reminders automatically when a dispute is flagged, and clearing paid invoices in your ledger. Explore our AR automation features or view transparent pricing (90-day free trial included).