NAVON
Free tool · Receivables

What is slow payment costing you?

Estimate the annual cost of excess DSO, and what you could recover. Under 60 seconds.

Annual cost of excess DSO$155K/yr

Defaults reflect the construction-industry average of ~83 days DSO against a 60-day target on Net-30 terms, capital costed at 8% per year. Adjust any field to match your operation.

Annual cost of excess DSO
$155K/yr

23 days above target, costed as carry on excess float plus the time spent chasing.

Carry cost$101K/yr
Admin labor$54K/yr
Recoverable with automated AR

Collecting ~15 days faster would free $822K in working capital and save $66K/yr in carry.

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MethodologyHow we got the numbers▾

Engineering and construction firms report DSO averages near 100 days (Upflow, State of B2B Payments 2024); the broader construction industry average sits closer to 83 days (Construction Credit & Finance Group, 2023). We compare your current DSO to a 60-day target on Net-30 terms. The gap, times your daily revenue, is working capital tied up; we cost it at 8% per year. Separately, the hours your team spends chasing invoices are costed at a $90/hr loaded AR rate across 50 working weeks.

The recovery projection applies Centime and Plooto benchmarking: automated payment reminders collect 12 to 18 days faster than manual follow-up. We use the 15-day midpoint, never collecting below your target, to estimate the working capital freed and the annual carry saved.

Sources: Upflow, State of B2B Payments 2024. Construction Credit & Finance Group industry survey 2023. Atradius, Payment Practices Barometer 2025 (North America). Centime and Plooto benchmarking analyses 2024 to 2025. BLS Occupational Employment Statistics, May 2024 (loaded AR rate).

FAQ

DSO calculator questions.

Questions about the math, the inputs, and what happens after.

What is DSO and why does it cost money?

Days Sales Outstanding is the average number of days it takes to collect on an invoice. Every day above your target ties up working capital you have already earned but cannot use, which carries a real cost of capital, and the chasing itself burns AR staff time. Construction runs the highest DSO of any major industry.

Where do the benchmarks come from?

The construction-industry average DSO of roughly 83 days comes from the Construction Credit and Finance Group and Upflow's State of B2B Payments 2024. The 60-day target reflects Net-30 terms plus a realistic collection cycle. Capital is costed at 8% per year. The recovery projection uses Centime and Plooto findings that automated payment reminders collect 12 to 18 days faster than manual follow-up.

What does 'recoverable with automated AR' mean?

It estimates the one-time working capital you would free, and the recurring annual carry you would save, if you collected about 15 days faster (the midpoint of the automated-reminder benchmark), without going below your target DSO. It is a working estimate, not a guarantee.

Why ask for my email to see the breakdown?

The headline number is on-page and free. The line-by-line math, the recovery detail, and the sources ship to your inbox in a format you can share with your finance team.

Is this a quote?

No. The calculator estimates the cost of your current AR cycle. Engagement scope is separate and gets walked through over a conversation.