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Accounts Receivable Calculator United Kingdom 2026-27

Debtor days, the receivables balance a 30-day sales ledger should be carrying, and what the excess is costing you — with the overdue split, an expected bad-debt exposure, and the overdraft interest the excess is quietly paying for.

Debtor days is the sales-ledger balance as a share of a year of turnover, expressed in days: debtors ÷ turnover × 365.

Inputs
Results update as you type
Results
Days Sales Outstanding (DSO)
43.8 days
Days Sales Outstanding—
Monthly revenue—
30-day target AR balance—
Excess AR above 30-day target—
Overdue ratio—
Collection efficiency—
DSO vs payment terms gap—
Estimated bad debt exposure—
Net collectible AR—
Collection cost per unit of AR—
Annual funding cost of excess AR—
Early payment saving potential—
Reviewed September 2026. Management accounting arithmetic: the same formulas in every market, in your own currency. The FRC expects alternative performance measures such as EBITDA to be reconciled to the nearest statutory figure. Maintained by Adam Formosa.
No account required · Google Analytics off unless allowedCalculator arithmetic runs in your browserResults update as you type
The receivables book: in-terms against overdue
The receivables book: in-terms against overdue
Current (in-terms)£120,000.00
All calculations run 100% in your browser. The calculator code does not submit your figures to GlobalCalc to obtain a result.
About accounts receivable
Method

How this calculator works

Debtor days is the sales-ledger balance as a share of a year of turnover, expressed in days: debtors ÷ turnover × 365. Enter turnover VAT-exclusive if your ledger is, because output VAT on an unpaid invoice is still owed to HMRC on the normal accruals basis — the invoice has cost you before it is paid. The target balance is one month of turnover, which is what a business collecting on 30-day terms carries; anything above it is working capital lent to customers. The gap between debtor days and your stated terms is the honest measure of whether the terms are being kept. Bad debt applies your own historical write-off rate, and the funding cost prices the excess at your overdraft rate. Where terms are exceeded, the Late Payment of Commercial Debts (Interest) Act 1998 entitles you to statutory interest at 8% above the Bank of England base rate plus a fixed compensation sum per invoice, whether or not the contract says so.

Formula: DSO = AR ÷ revenue × 365 · target AR = revenue ÷ 12 · excess = AR − target · funding cost = max(excess, 0) × facility rate

Guide

UK Accounts Receivable Notes

UK receivables planning often separates VAT from usable cash and compares invoice due dates, debtor days, late-payment risk, and payroll or supplier timing.

Use this version to test 14-day, 30-day, and 60-day terms, late invoices, and the working-capital benefit of tighter collection routines.

UK-specific treatment for accounts receivable: figures are framed in pounds, with British household or business wording and the assumptions commonly seen in PAYE, HMRC, mortgage, pension, and consumer-credit contexts.

Watch for UK markers in the page copy and inputs: HMRC, PAYE, National Insurance, pension contributions, stamp duty land tax, miles, APR, part-exchange, council tax, VAT, and GBP-based totals.

The result should be read as a United Kingdom estimate, so compare it with UK provider quotes, HMRC or GOV.UK guidance, lender affordability rules, devolved-nation differences, or regulated advice where needed.

Estimates only. Actual results depend on your specific circumstances.

Quick scenarios Understanding your result

Select the question that matches where you are right now.

Your result shows the financial metric for the business scenario you entered — based on standard accounting and financial analysis formulas.

What to do with it

Use this to evaluate business decisions, compare scenarios, or prepare figures for a business plan, loan application, or stakeholder presentation.

What it is not

Not a valuation, audit, or professional accounting opinion. Business decisions of significant value should be reviewed by a qualified accountant or financial adviser.

Accuracy

Uses standard formulas with the inputs you provided. Calculator arithmetic runs in your browser; the calculator code does not submit your figures to GlobalCalc to obtain a result.

Business calculations are most sensitive to revenue assumptions, cost structure, and the time horizon over which you project. Small changes to these inputs compound significantly.

Revenue assumptions

Sales volume and price are the primary revenue drivers. Test conservative, expected, and optimistic scenarios to understand the range of possible outcomes.

Fixed vs variable costs

Your cost structure determines how much of each additional dollar of revenue becomes profit. Higher fixed costs mean higher break-even but stronger leverage above it.

Cash flow timing

Profit on paper and cash in the bank are different things. Receivables, payables, and inventory timing can create cash flow gaps even in a profitable business.

To improve your business metrics, focus on the highest-leverage changes — often pricing, cost reduction, or working capital management.

Review pricing

A 5% price increase with no volume loss drops straight to the bottom line. Test the sensitivity of your result to small pricing changes.

Reduce cost of goods

Negotiating supplier terms, reducing waste, or increasing efficiency improves margins without needing more sales.

Speed up receivables

Reducing average debtor days from 45 to 30 can free significant working capital and reduce the need for external finance.

Business finances connect to tax, loan, and cash flow decisions. Use these calculators to model the broader picture.

Check break-even

Find the sales volume needed to cover all costs before you start generating profit.

Break-even → Model a business loan

See the repayment schedule and total cost of financing for a business purchase or expansion.

Business loan → Calculate profit margin

Understand your gross and net margins to benchmark against industry standards.

Profit margin → Related calculators Profit MarginRevenue minus all costs Break-EvenCover your fixed costs Loan RepaymentBusiness loan costs Budget SurplusCash flow planning About accounts receivable calculator How it works
Guide

How the Accounts Receivable Calculator works

This calculator provides an instant estimate based on your inputs. Calculate Days Sales Outstanding (DSO), accounts receivable turnover, and identify excess AR tying up working capital in your UK business.

Inputs

Enter your details in the fields above. Results update automatically as you type. Switch between Simple, Standard, Detailed, and Advanced modes to control the level of detail shown.

Results

The primary result shows the main output. The breakdown below shows how it is calculated. Copy the result to your clipboard or print the page for your records.

Examples
Guide

Worked examples — Accounts Receivable Calculator

Use the Quick Answer chips above to load pre-populated scenarios for common situations. Each scenario loads the relevant inputs automatically and shows a breakdown of the result.

For your own scenario, enter your specific figures in the input fields. The Standard and Detailed modes reveal additional inputs for more accurate results.

How to use