Calculate average customer credit period. This calculator helps you determine the average time it takes for customers who bought on credit to pay.
The average customer credit period tells us how long, on average, it takes before customers pay their invoices. You can choose whether to use 365 or 360 days — the key is consistency.
Formula for average customer credit period:
$$\frac{average~accounts~receivable}{sales~revenue~incl.~tax}*365$$
Result: