How long do you take to pay suppliers?
Enter your payables and purchases. See days payable outstanding, how it compares with your terms, and the cash each day is worth.
Your numbers
Example numbers are filled in. Replace them with yours.
Money you owe suppliers.
Use purchases on credit if you have them; otherwise cost of goods sold.
30 for a month, 90 for a quarter, 365 for a year.
Optional. The days you are meant to take to pay.
Days payable outstanding
15 days
Payables ÷ purchases × days
You pay within your terms. If you pay much earlier, you may be giving away cash you could hold.
- Purchases per dayWhat one more day of payment time is worth.
- ₹20,000
- Compared with your terms
- 15 days earlier
- Cash you could hold longerIf you pay earlier than your terms, the days × purchases per day.
- ₹3,00,000
Open shows balances across every bank, so you can time supplier payments to cash you actually have.
A calculation for planning, not accounting, tax or investment advice. It uses only the numbers you enter, and everything is calculated in your browser: nothing you type leaves it.
Questions about this tool
How is DPO calculated?
DPO is payables ÷ purchases × the days in the period. Rs 3,00,000 of payables against Rs 18,00,000 of purchases over 90 days is 3,00,000 ÷ 18,00,000 × 90 = 15 days.
Should I use purchases or cost of goods sold?
Purchases made on credit is the better base, because it is what creates payables. If you only have cost of goods sold, use that and say so when you compare periods.
Is a higher DPO always better?
No. Paying later holds cash longer, but it can breach supplier terms, cost you early-payment discounts and strain relationships. Payment limits can apply to micro and small enterprise vendors, so check those before stretching.
What does paying earlier than terms mean?
If your DPO is below your terms, you are paying before you have to. The calculator shows the cash you could hold for longer if you paid on the due date.
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