Cash flow
DSO calculator
Work out your Days Sales Outstanding from your own numbers, then see what a few days' improvement is actually worth in rupees — not just in days.
What a lower DSO is worth
Enter your current DSO, a target you think is realistic, and your borrowing cost — this shows the cash you'd free permanently, and what that's worth every year.
The formula
And the cash freed by cutting it:
That freed amount isn't a one-time gain — it's a permanent reduction in the working capital tied up in your books, available every year from then on. Multiply by your borrowing rate (or, if you're debt-free, your best alternative use of the cash) to see the annual value.
What counts as a "good" DSO
There's no universal number — it depends entirely on your payment terms and sector. A business invoicing on 30-day terms with a DSO of 45 has a real 15-day collection gap. The same 45-day DSO on 60-day terms means customers are actually paying early. The number that matters is the gap between your DSO and your stated terms — that gap is the part you can realistically close.
The number this calculator can't give you
Your overall DSO is one number for the whole business. It can't tell you which specific customers are dragging it up, which ones are already paying on schedule and shouldn't be chased, or which invoices are stuck in a dispute rather than simply late. That needs your actual ageing report, customer by customer.
Upload your Tally outstanding report. We calculate your DSO, your customers' actual average payment time, and how much of the gap between them is genuinely recoverable — no signup, nothing stored.
Run a free health checkNext: How to reduce DSO — the five changes · Spotting a disputed invoice