Average Collection Period Calculator

Enter the total number of days of a collection period, the total net receivables, and total net credit sales into the calculator. The calculator will determine the average collection period.

Average Collection Period Formula

The follow equation is used to calculate the average collection period.

ACP = D× NR / NCS

  • Where ACP is the average collection period
  • D is the total number of days
  • NR is the average net receivables
  • NCS is the net credit sales

Average Collection Period Definition

An average collection period is the average time it would take for the net receivables to be equal to the net credit sales.

average collection period calculator

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