How to use this tool
- Enter average accounts payable, cost of goods sold, days in period.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
The method, explained
DPO = average payables/COGS × days in period.
Using average accounts payable = 25000 money, cost of goods sold = 180000 money, days in period = 365 days, the result is 50.6944444 days. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Purchases may be a more appropriate denominator when reliable purchase figures are available. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Common questions
Which inputs does this calculation need?
Estimate supplier payment days under a COGS-based convention. Enter average accounts payable in money, cost of goods sold in money, days in period in days. The filled example is editable and is not a saved personal record.
How should I interpret the result?
Purchases may be a more appropriate denominator when reliable purchase figures are available. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Methodology maintained by ClarityKit. How these tools are built and checked.