Collection Effectiveness Index (CEI) Calculator

The Collection Effectiveness Index (CEI) measures collection performance as the percentage of receivables that were collectible and actually collected during a period. Unlike DSO it is not distorted by sales growth.

How to use the Collection Effectiveness Index (CEI) Calculator

  1. Enter beginning AR and credit sales.
  2. Enter ending total and current AR.
  3. Read CEI.

How it works

CEI = (Beginning AR + Credit sales − Ending total AR) ÷ (Beginning AR + Credit sales − Ending current AR) × 100.

Worked example

Beginning AR 1,000,000, sales 3,000,000, ending total AR 1,300,000, ending current AR 900,000: CEI = 2,700,000 ÷ 3,100,000 = 87.1%.

Good to know

Aim for 80–100% depending on your terms mix.

Calculate monthly and track the trend.

Ending current AR must not exceed ending total AR.

Frequently asked questions

Above 80% is generally acceptable and near 100% is excellent.

DSO is a time measure affected by sales volume; CEI measures collection performance against what was collectible.

Monthly or quarterly, kept consistent.

Results are estimates for information only and are not accounting, financial or legal advice.