Business

Accounts Payable Days Calculator

How long you take to pay suppliers, in days.

Enter your values

ⓘ Live results

Results
Days payable outstanding
43.8 days
Daily COGS
$2,054.79
Payables turnover
8.33x per year
Cash freed per extra 10 days
$20,547.95

Quick answer

Days payable outstanding is average accounts payable divided by COGS, times 365.

DPO = (AP / COGS) x 365

How to use the Accounts Payable Days Calculator

  1. 1Enter the average balance owed to suppliers.
  2. 2Enter annual cost of goods sold.
  3. 3Compare DPO against your supplier terms — well above them signals late payment.

Worked example

Using the values the calculator loads with:

Inputs

  • Accounts payable90000 $
  • Annual COGS750000 $

Results

  • Days payable outstanding43.8 days
  • Daily COGS$2,054.79
  • Payables turnover8.33x per year
  • Cash freed per extra 10 days$20,547.95

Frequently asked questions

Is a high DPO good?

Stretching payables funds operations cheaply, but damages supplier goodwill past agreed terms.

How does it relate to the cash cycle?

Cash conversion cycle = DSO + inventory days - DPO.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.