DPO Calculator

Days Payable Outstanding (DPO) is the average number of days a company takes to pay its suppliers. A higher DPO keeps cash longer but can strain supplier relationships.

How to use the DPO Calculator

  1. Enter ending accounts payable.
  2. Enter COGS (or credit purchases) and period days.
  3. Add supplier terms and read DPO.

How it works

DPO = (Ending accounts payable ÷ COGS or credit purchases) × Days in the period.

Worked example

AP of 900,000 against 3,600,000 of quarterly COGS: DPO = 900,000 ÷ 3,600,000 × 90 = 22.5 days. With 30-day terms, that is 7.5 days faster than terms.

Good to know

Paying far earlier than terms gives away working capital; paying late can cost discounts, fees and supply.

Compare DPO with DSO and DIO in the cash conversion cycle.

Use the same period for AP and COGS.

Frequently asked questions

Divide accounts payable by COGS and multiply by the days in the period.

It improves cash, but only if you still pay within agreed terms and keep supplier goodwill.

DPO is how fast you pay suppliers; DSO is how fast customers pay you.

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