Days Payable Outstanding (DPO) Calculator
FinanceCalculate Days Payable Outstanding (DPO), the average number of days your business takes to pay its suppliers.
Days Payable Outstanding
The average number of days your business takes to pay its suppliers.
Purchases
$350,000
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Odeh Ahwal0people find this calculator helpful
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Saved
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Frequently Asked Questions
How is DPO calculated?
DPO = (Average Accounts Payable / Purchases) x Number of Days, where Purchases = Ending Inventory - Beginning Inventory + Cost of Goods Sold.
Is a higher DPO always better?
A higher DPO means you are holding onto cash longer, which can help cash flow, but an excessively high DPO can strain supplier relationships or signal you are struggling to pay bills on time.
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