Cash Conversion Cycle Calculator
Work out how many days cash is tied up in your business, from days inventory outstanding, days sales outstanding and days payables outstanding.
- Free
- No sign-up to try
- Works as you type
Cash conversion cycle
Cash conversion cycle
61.8 days
Days inventory outstanding (DIO)
48.7 days
Days sales outstanding (DSO)
45.6 days
Days payables outstanding (DPO)
32.4 days
- DIO = average inventory ÷ cost of goods sold × days.
- DSO = average receivables ÷ revenue × days.
- DPO = average payables ÷ cost of goods sold × days.
- Cash conversion cycle = DIO + DSO − DPO.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Cash Conversion Cycle Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Average inventory
- $120,000
- Cost of goods sold in the period
- $900,000
- Average accounts receivable
- $150,000
- Revenue in the period
- $1,200,000
- Average accounts payable
- $80,000
- Days in the period
- 365
Results
- Cash conversion cycle
- 61.8 days
- Days inventory outstanding (DIO)
- 48.7 days
- Days sales outstanding (DSO)
- 45.6 days
- Days payables outstanding (DPO)
- 32.4 days
How it's calculated
- DIO = average inventory ÷ cost of goods sold × days.
- DSO = average receivables ÷ revenue × days.
- DPO = average payables ÷ cost of goods sold × days.
- Cash conversion cycle = DIO + DSO − DPO.
- Assumes: Averages are (start + end) ÷ 2 for the same period as cost of goods sold and revenue.
- Assumes: DPO uses cost of goods sold; some analysts use purchases instead, which gives a different figure.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Finance teams
Track the cycle quarter by quarter.
Business owners
See whether faster collection or slower payment frees more cash.
Students
Check working capital homework with the method shown.
Good to know
What to consider
- Use averages for the same period as your revenue and cost of goods sold.
- DPO is based on cost of goods sold here; some analysts use purchases, which gives a different figure.
Questions
About the Cash Conversion Cycle Calculator
Is a shorter cash conversion cycle always better?
Usually it means less cash tied up, but not always: stretching suppliers too far or running inventory too thin can cost more than the cash it frees. Compare the cycle with your own history and your industry.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
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