AR health score calculator
Accounts Receivable Health Score
100/100
Your DSO: 0.0 days (target: 30 days)
0.0% of outstanding is overdue
100.0% of invoices collected within 90 days
Overdue Ratio
DSO Performance
Collection Efficiency
What to fix first: Your clients are paying later than your terms. Consider shortening payment terms or adding early payment incentives.
Snapshot context: outstanding $0 · overdue $0 · clients 0 · industry Freelance/Creative
Run this monthly and automate reminders to prevent score slippage.
Start freeWhat the AR health score measures
Think of AR health like fitness: overdue ratio is body-fat, DSO is stamina, collection rate is consistency. You need all three to stay cash-flow healthy.
AR benchmarks by business type
| Business type | Healthy DSO | Acceptable overdue ratio | Collection rate target |
|---|---|---|---|
| Freelancer | <21 days | <10% | >96% |
| Agency | <35 days | <15% | >93% |
| Consulting | <28 days | <12% | >95% |
| Trades/Construction | <40 days | <20% | >90% |
How to improve each component
To reduce overdue ratio, prioritize oldest invoices first with fixed cadence. To lower DSO, tighten terms and add pre-due reminders. To improve collection rate, automate follow-up so no invoice is forgotten.
Related: DSO Calculator and Late Payment Cost Calculator.
External references
Written by Pasko Djonovic, Founder at ChaseAI • Last updated May 6, 2026
