Accounts Receivable Aging & Cash Flow Calculator
Analyse unpaid invoices by aging buckets, estimate bad debt reserves, calculate Days Sales Outstanding (DSO), and understand the cash flow impact of your receivables - all in your browser, free, with no sign-up.
Percentage of standard bad debt rates to apply (100% = standard rates)
$150,000
5 aging buckets
37.5d
Prior: 38.0d -0.5d change
43.3%
56.7% current
$7,700
5.1% of AR
Weighted Avg Collection
37.6 days
Capital Tied in AR
$150,000
Potential Cash Flow Improvement
Reducing DSO from 37.5 to 30 days could free up $30,000 in cash.
Monthly AR Health Metrics
How AR Aging & Cash Flow Calculations Work
This calculator uses standard accounting formulas: DSO = (Total AR / Monthly Credit Sales) × 30 days. Weighted average collection period uses midpoints of each aging bucket (15, 45, 75, 105, 150 days). Bad debt is estimated using standard probability rates per bucket (1% current, 3% 1-30d, 10% 31-60d, 25% 61-90d, 50% 91+d) multiplied by your provision rate. Reducing DSO to 30 days frees up cash by reducing the capital tied in overdue receivables. All calculations run locally in your browser - no data is transmitted to any server.
Why Use Our Accounts Receivable Aging Calculator?
Visual AR Aging Distribution
The AR aging calculator displays your accounts receivable across five aging buckets - current, 1-30, 31-60, 61-90, and 91+ days overdue - with a color-coded pie chart and individual progress bars. See at a glance how much of your AR is current versus overdue and where collection efforts should focus.
DSO Tracking & Cash Flow Impact
Calculate your Days Sales Outstanding (DSO) with month-over-month trend comparison. The AR aging calculator shows the cash tied up in excess AR beyond a 30-day target and quantifies how much cash could be freed up by improving collection efficiency.
Bad Debt Estimation & Provisioning
Estimate your bad debt provision using standard probability rates per aging bucket. The AR aging calculator applies higher rates to older receivables and lets you adjust the overall provision rate to match your business risk profile, helping you maintain an accurate allowance for doubtful accounts.
Secure & Free - No Signup Required
All calculations in our AR aging calculator run locally in your browser. Your accounts receivable data, sales figures, and financial metrics are never transmitted to any server. Completely free with no signup, no ads, and no usage limits.
CFOs & Finance Teams
Monitor Days Sales Outstanding (DSO) trends monthly, identify deteriorating customer payment patterns early, and forecast cash flow with aging-based collection probabilities to reduce working capital gaps.
Small Business Owners
Track which overdue invoices need immediate follow-up, estimate bad debt reserves accurately, and understand how outstanding receivables impact your ability to meet payroll and supplier obligations.
Accounts Receivable Managers
Generate aging summaries for weekly collection meetings, prioritise follow-up calls based on aging severity, and evaluate the effectiveness of dunning strategies across customer segments.
Credit & Collections Teams
Assess the credit risk of new vs. existing customers using aging-pattern analysis, set appropriate credit limits, and decide when to escalate overdue accounts to collections or legal action.
Auditors & Accountants
Validate the adequacy of the Allowance for Doubtful Accounts (ADA), test the reasonableness of aging-based reserve percentages, and prepare aging schedules for quarterly reviews or external audit requests.
E-commerce & SaaS Companies
Manage subscription billing receivables, track net-30/net-60 payment cycles from enterprise clients, and forecast when recurring revenue invoices will convert to available cash.
What Are Accounts Receivable Aging Buckets?
Aging buckets group unpaid invoices by how long they have been overdue - typically Current (0-30 days), 31-60 Days, 61-90 Days, and 90+ Days. Each bucket carries a higher probability of non-payment. By analysing the distribution across buckets, businesses can estimate how much cash is genuinely collectible and how much needs to be reserved as bad debt.
What Is Days Sales Outstanding (DSO)?
DSO measures the average number of days it takes to collect payment after a sale is made. A lower DSO means faster cash conversion and healthier working capital. DSO above 45 days is a red flag in most industries, indicating that collection processes need tightening or that customers are being given overly generous payment terms.
How Bad Debt Reserve Percentages Work
Standard accounting practice assigns a reserve percentage to each aging bucket - for example, 2 % for Current, 10 % for 31-60 days, 30 % for 61-90 days, and 50 %+ for 90+ days. The calculator sums the weighted values to produce anAllowance for Doubtful Accounts (ADA), giving you a realistic estimate of potential losses.
Cash Flow Impact of Receivables
Tied-up receivables represent cash that could be used for payroll, inventory purchases, debt servicing, or growth investments. This calculator converts your aging schedule into a cash-flow projection, showing exactly how much cash is blocked in each bucket and what improvements in collection speed would mean for your available working capital.
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What is accounts receivable aging and why is it important?
Accounts receivable (AR) aging is a financial report that categorises unpaid customer invoices by the length of time they have been outstanding. It is critical because it helps businesses identify collection problems early, estimate bad debt reserves accurately, and forecast cash flow. A healthy AR aging profile shows most receivables concentrated in the Current (0-30 days) bucket, with minimal amounts in 90+ days.
What is a good Days Sales Outstanding (DSO) number?
A "good" DSO varies by industry - net-30 businesses should target DSO below 35 days, while net-60 industries may operate at 45-55 days. As a rule of thumb, DSO above your standard payment terms by more than 10 days indicates collection inefficiencies. A rapidly rising DSO over consecutive months is one of the earliest warning signs of cash flow trouble.
What reserve percentages should I use for bad debt estimation?
Reserve percentages depend on your industry, customer creditworthiness, and historical collection data. Common starting points are: Current 1-2 %, 31-60 days 5-10 %, 61-90 days 15-30 %, and 90+ days 50-100 %. The calculator uses conservative defaults (2%, 10%, 30%, 60%), but you can adjust these to match your actual collection experience.
How does AR aging directly impact cash flow?
Every dollar in aged receivables is a dollar that cannot be used for payroll, inventory, debt payments, or growth. For example, if you have $50,000 in the 61-90 day bucket and a 30 % reserve, $15,000 of that is at risk. More importantly, the $50,000 has been unavailable for 2-3 months - slowing your operating cycle. Reducing DSO by even 5 days can free up significant working capital in high-revenue businesses.
Can this calculator help me decide which invoices to prioritise?
Yes. The calculator highlights which aging buckets contain the most value, allowing you to prioritise follow-up calls on the largest overdue invoices first. A common strategy is to focus on the 31-60 and 61-90 day buckets - invoices under 30 days still have a high likelihood of being paid on time, while invoices over 90 days often require escalation to management or a collections agency.
Is my financial data safe when using this AR aging calculator?
Absolutely. All calculations run entirely in your browser using JavaScript. No invoice data, customer names, or dollar amounts are ever sent to a server, stored, or tracked. You can refresh the page and all data is cleared - no history or cookies related to your financial information are retained.
How often should I run an AR aging analysis?
Best practice is to run an aging analysis at least once per month, aligned with your month-end close. High-volume businesses or those with DSO above 45 days should run it weekly. The key is to track the trend - comparing the current aging distribution against previous months reveals whether collection efforts are working or deteriorating.
What is the difference between an aging schedule and a cash flow forecast?
An aging schedule is a snapshot of what customers owe, grouped by how overdue each invoice is. A cash flow forecast projects when those invoices will convert to cash, factoring in collection probabilities and historical payment patterns. This calculator combines both - it uses your aging distribution to estimate collectible cash and highlights the gap between total receivables and expected inflows.
Is this AR aging calculator completely free to use?
Yes, this tool is 100 % free with no usage limits, no sign-up required, and no hidden charges. There are no premium tiers, no credit card required, and no account creation. Just enter your invoice data and get instant insights - it is designed to be accessible to any business, from solopreneurs to finance teams at large enterprises.