DSO calculator
YOUR DSO
0.0 days
Your DSO0.0 days
Industry benchmark28 days
Your payment terms30 days
✅ You are collecting faster than your industry average
💰 CASH FLOW IMPACT
Cash currently tied in AR: $0
Excess cash vs your terms: $0 (0.0 extra days)
Daily revenue value: $0/day
📈 If you reduced DSO by 7 days, you would free up: $0
BPDSO estimate: 27.0 days · Delinquent DSO: -27.0 days
Reduce DSO with automated reminders and stronger payment terms.
Start freeWhat is Days Sales Outstanding (DSO)?
DSO measures how long it takes to collect invoice revenue. Formula: DSO = (AR ÷ Total Credit Sales) × Number of Days. If AR is $24,000 and 90-day sales are $60,000, DSO is 36 days.
DSO benchmarks by industry (2024–2025)
| Industry | Average DSO | Best-in-class DSO | Source |
|---|---|---|---|
| Freelance/Creative | 28 days | <21 days | ChaseAI user data |
| Digital Agency | 38 days | <28 days | Atradius 2024 |
| Consulting | 32 days | <25 days | Atradius 2024 |
| Construction | 47 days | <35 days | Dun & Bradstreet |
| SaaS | 42 days | <30 days | OpenView Partners |
How to reduce your DSO
- Use shorter terms where possible.
- Require deposits on larger projects.
- Automate reminders before and after due date.
- Offer selective early-payment discounts.
- Send invoices immediately after delivery.
Related tools: AR Health Score and Late Payment Cost Calculator.
External references
Written by Pasko Djonovic, Founder at ChaseAI • Last updated May 6, 2026
