Calculators
Days Payable Outstanding (DPO) calculator
DPO measures how long your business takes to pay its suppliers, one of the three pillars of the cash conversion cycle.
DPO result
Enter COGS and payables to see your DPO
Uses a 365-day year, the last 12 months of figures and the currency you select.
How it’s calculated
DPO = Accounts payable ÷ COGS × 365
Last 12 months, 365-day year, one currency.
A higher DPO keeps cash in the business longer, but extended terms can strain suppliers if they are not supported. Supply chain finance programmes let buyers extend DPO while suppliers still get paid early.
What it tells you
- How long, on average, you take to settle suppliers.
- How much cash your payables policy releases (or ties up).
- How much room there is for an early-payment programme with your bank.