Measure collection time and the cost of late receipts or payment discounts. Start with a completed job sheet, supplier quotes and a crew schedule. Each example below uses hypothetical values you can replace.
Which calculator should you use?
| Tool | What it answers | What to check |
|---|---|---|
| Receivable Collection Days | Estimate days of credit sales represented by average receivables. | Cash sales do not create trade receivables. Including them can make collection time look artificially short. |
| Late Invoice Carrying Cost | Estimate an internal financing cost associated with delayed receipt. | This tool estimates internal cost only. Contract terms and local law determine whether any fee may be charged. |
These tools answer different questions and may use different units. Choose the tool that measures what you need; a larger result does not necessarily mean a better outcome.
Receivable Collection Days
Estimate days of credit sales represented by average receivables.
Collection days = receivables / credit sales × period days
Show example inputs and result
| Average trade receivables | 20,000 |
|---|---|
| Credit sales in period | 100,000 |
| Days in period | 90 days |
Result: 18 days.
Cash sales do not create trade receivables. Including them can make collection time look artificially short.
Open receivable collection daysLate Invoice Carrying Cost
Estimate an internal financing cost associated with delayed receipt.
Carrying cost = invoice × annual rate × delay days / 365
Show example inputs and result
| Unpaid invoice amount | 10,000 |
|---|---|
| Days delayed | 30 days |
| Annual cash carrying-cost assumption | 12 % |
Result: 98.6301 .
This tool estimates internal cost only. Contract terms and local law determine whether any fee may be charged.
Open late invoice carrying costUse the results in your plan
For a plumbing service business, review fittings, access time, and travel across the complete workflow. Use one consistent period and delivery unit: a service visit. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
Explore all relevant plumbing service calculators