Days Payable Outstanding calculator
Work out how long your business takes to pay its suppliers, on average. Enter your accounts payable and cost of goods sold below, nothing is sent anywhere.
Your numbers
Cost of goods sold, not revenue, this is what was actually paid to suppliers and vendors over the period, before overhead or margin.
Days Payable Outstanding
Enter accounts payable and cost of goods sold above to see your DPO.
DPO = (accounts payable ÷ cost of goods sold) × days in period
DPO is a cash flow lever, not just a bookkeeping number
What it actually measures
DPO estimates the average number of days between receiving a supplier invoice and paying it, based on how much you currently owe against how much you spend on goods and services.
Why it's worth tracking
Stretching DPO frees up cash to use elsewhere. Paying too fast ties up working capital you might not need to spend yet. Most finance teams watch it alongside days sales outstanding to see the full cash conversion picture.
One thing to watch: DPO is an average across every supplier and invoice in the period. A single overdue balance can push it up just as much as a deliberate decision to extend terms, so it's worth checking what's actually driving the number before reading too much into it.