Finance CalculatorsBusiness FinanceFree Tool
Days Payable Outstanding
Calculate your Days Payable Outstanding (DPO) from your accounts payable balance and COGS, to see how long you take to pay suppliers on average.
How to Use Days Payable Outstanding
- 1Enter your accounts payable balance
- 2Enter your COGS for the period
- 3Click Calculate to see your Days Payable Outstanding
Frequently Asked Questions
DPO = (Accounts Payable divided by COGS) times 365.
A higher DPO means you're holding onto cash longer before paying suppliers, which generally helps cash flow - but too high a DPO can strain supplier relationships or signal you're struggling to pay on time, so it's a balance, not a figure to maximize blindly.
DPO is subtracted in the CCC formula (CCC = DSO + DIO - DPO) since it offsets the cash tied up in receivables and inventory - a higher DPO shortens your overall cash conversion cycle.
Your cost of goods sold for the same period as your accounts payable balance - enter your own figure; the calculator doesn't derive COGS from other inputs.
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