---
title: "Cash Conversion Cycle Calculator | MCC Solutions"
description: "Enter sales, cost of goods sold, inventory, receivables and payables to get DIO, DSO, DPO and your cash conversion cycle."
url: "https://mcc-solutionsnj.com/bookkeeping/cash-conversion-cycle-calculator"
---

Free tool

# Cash conversion cycle calculator

See how many days your cash is tied up between paying suppliers and collecting from customers.

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Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

Annual sales ($)

Annual cost of goods sold ($)

Average inventory ($)

Average accounts receivable ($)

Average accounts payable ($)

Prefer to talk it through? [Take the free books check](/bookkeeping/health-check) or [contact us](/contact).

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## Put this tool on your own site

Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us.

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How it works

## How it works

**DIO** = inventory / COGS x 365. **DSO** = receivables / sales x 365. **DPO** = payables / COGS x 365. **Cash conversion cycle = DIO + DSO - DPO.** Use average balances if you have them.

FAQ

## About this calculator

**What does the cash conversion cycle show?**

How long it takes to turn money spent on inventory back into cash from sales. A shorter cycle means less cash is tied up.

**Can it be negative?**

Yes. If you collect and sell faster than you pay suppliers, the cycle is negative, which means suppliers are financing part of your operations.

**Does it work for a service business?**

Mostly the receivables and payables parts do. With no inventory, set inventory to zero.

**Is anything saved?**

No. The math runs in your browser and nothing you enter is sent to us.

**Is this tax or financial advice?**

No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.

Related: [accounts receivable turnover calculator](/bookkeeping/accounts-receivable-turnover-calculator), [inventory turnover calculator](/bookkeeping/inventory-turnover-calculator). See [all free tools](/free-tools). More free tools: [NJ SALT deduction calculator](/bookkeeping/nj-salt-deduction-calculator), [1099-DA mismatch checker](/bookkeeping/1099-da-mismatch-checker), [Catch-up contribution calculator](/bookkeeping/401k-catch-up-contribution-calculator), or [see all free tools](/free-tools).

Free

### Month-End Close Checklist (PDF)

The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.

General information, not tax or legal advice. [How we write and check our tools](/editorial-standards).

Do it yourself

### 13-Week Cash Flow Forecast

List what you expect to collect and pay, and see your cash balance each week, the lowest point and when it happens.

[See what's inside ($29)](/toolkits/cash-flow-forecast-13-week) [Free sample](/toolkits/cash-flow-forecast-13-week#free-starter)14-day full refund

Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

[Free health check](/bookkeeping/health-check)[Call (908) 444-6373](tel:+19084446373)