The method
How it is worked out
CCC = DSO + DIO − DPO; DSO = receivables ÷ revenue × 365; DIO, DPO use cost of goods
- DPO
- Days you take to pay suppliers; longer helps you, up to a point
Cash Conversion Cycle Calculator
Measure how many days cash is tied up between paying suppliers and getting paid, and what shortening it frees. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- SeasonalityYear-end balances may not reflect the average.
- Service firmsWith no stock, DIO is zero and DSO is everything.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Cash Conversion Cycle Calculator
Measure how many days cash is locked up between paying suppliers and collecting from customers, and what shortening the cycle frees.
How it works and an example to tryShow less
How to use the result
Days sales outstanding, days inventory and days payables are derived from balances against revenue or cost of goods. The cycle is DSO plus DIO minus DPO. Cash freed is days shaved times daily revenue.
Example to try
£2.4m of revenue with £320k receivable, £200k of stock and £180k payable has a 54-day cycle. Each day holds about £6,600; shaving ten days frees £66,000.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Finance leads, founders raising working-capital finance and operators of stock-heavy businesses.
Mistakes worth avoiding
- Chasing sales while receivables balloon.
- Paying suppliers early without a discount.
- Measuring once a year and missing seasonal peaks.
Questions
What does the Cash Conversion Cycle Calculator do?
Measure how many days cash is tied up between paying suppliers and getting paid, and what shortening it frees.
How should I use the result?
Days sales outstanding, days inventory and days payables are derived from balances against revenue or cost of goods. The cycle is DSO plus DIO minus DPO. Cash freed is days shaved times daily revenue.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a cash conversion cycle calculator?
Chasing sales while receivables balloon. Paying suppliers early without a discount. Measuring once a year and missing seasonal peaks.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.