Average Collection Period Calculator

Your details

Choose whether to enter your AR balance and sales figures, or supply the AR turnover ratio directly.
Using beginning and ending balances gives a more accurate average, especially when AR fluctuates during the period.
The average accounts receivable balance for the period, typically (beginning AR + ending AR) / 2.
USD
If you only know total sales, choose the second option and enter the percentage sold on credit terms.
Total revenue from credit sales for the period, net of returns and allowances. Do not include cash sales.
USD
Some industries and financial conventions use 360-day years. 365 days is the more common standard.
The number of days you give customers to pay (e.g. 30 for Net 30). Used to benchmark your ACP against your stated terms.
days
Average Collection PeriodGood
30.4days

Average days to collect payment after a credit sale

AR Turnover Ratio12x
Average AR Used50,000USD
Net Credit Sales Used600,000USD
Days Over/Under Credit Terms0.4days
30.4 days
Excellent<30Good30-45Acceptable45-60High60-90Very High90+

Your average collection period is 30.4 days.

  • You are collecting 0.4 days after your credit terms, which is within the typical 5-10 day grace buffer considered acceptable for most industries.
  • Your AR turnover ratio of 12.00x means you collect your full receivables balance approximately 12.0 times per year.
  • An ACP of 30-45 days is in line with wholesale distribution and professional services benchmarks.

Next stepContinue monitoring your ACP monthly to catch any upward trend early.

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