Accounts Payable Days Calculator
Calculate how many days a business takes to pay suppliers, and how often payables turn over.
Quick answer
Days payable outstanding is the average number of days a business takes to pay suppliers: average accounts payable divided by COGS (or purchases), multiplied by the days in the period.
Accounts Payable Days Calculator
Days Payable Outstanding
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AP Turnover
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Average Payables
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Cost Base per Day
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DPO by Payables Balance
| Balance | Payables (₹) | AP turnover | DPO (days) |
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Assumptions & method
- DPO = average accounts payable ÷ cost base × days in period.
- AP turnover = cost base ÷ average accounts payable. DPO = days in period ÷ AP turnover.
- Average payables = (beginning + ending) ÷ 2. Cost base is COGS or purchases for the same period.
- Purchases = COGS + ending inventory − beginning inventory, if you need to derive it.
- Not included: payment terms, early-payment discounts, taxes payable, or seasonality within the period.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
Reading accounts payable days
Accounts payable days show how long, on average, a business takes to settle what it owes suppliers. Supplier credit is a source of short-term funding, so a longer period keeps cash in the business for longer, while a shorter one suggests quicker payment. To calculate it, divide average accounts payable by the cost base, either cost of goods sold or purchases, and multiply by the number of days in the period. The inverse view is payables turnover, which shows how many times the balance is cleared in the period. This calculator gives both measures, shows the daily cost base and compares the result across opening, closing and average balances.