Accounts Receivable Aging Calculator

What is Accounts Receivable Aging?

Accounts receivable aging is a financial statement that categorizes outstanding invoices based on how long they've been unpaid. The standard aging report typically divides receivables into four categories:

• Current (0-30 days)
• 1-30 days (31-60 days)
• 31-60 days (61-90 days)
• Over 90 days (91+ days)

This breakdown helps businesses assess their collection performance and identify potential payment issues. A healthy aging report shows most receivables are paid within 30 days, while an unhealthy report indicates significant delays in collections.

How to Calculate Accounts Receivable Aging

The accounts receivable aging calculation involves categorizing outstanding invoices by their age. Here's the step-by-step process:

1. List all unpaid invoices with their invoice date and amount
2. Calculate the age of each invoice by subtracting the invoice date from the current date
3. Categorize each invoice into one of the four standard buckets
4. Sum the amounts in each bucket to get your aging report

Example Calculation

Suppose you have the following unpaid invoices as of June 1, 2023:

The resulting aging report would be:

How to Use This Calculator

Our accounts receivable aging calculator makes it easy to analyze your receivables. Here's how to use it:

1. Enter the current date in the "As of Date" field
2. Add each unpaid invoice by entering the invoice date and amount
3. Click "Add Invoice" to include it in the calculation
4. Repeat for all unpaid invoices
5. Click "Calculate" to generate your aging report
6. Review the results and chart visualization

The calculator will automatically categorize each invoice into the appropriate bucket and display the total amounts in each category. You'll also see a visual representation of your aging report.

Interpreting Your Results

Understanding your accounts receivable aging report can help you make informed business decisions. Here are some key insights to look for:

• Current (0-30 days): Healthy if most receivables fall here. Indicates good collection performance.
• 1-30 days (31-60 days): Moderate risk. These invoices are past due but still within a reasonable collection period.
• 31-60 days (61-90 days): Higher risk. These invoices are significantly past due and may require collection efforts.
• Over 90 days (91+ days): Highest risk. These invoices are very old and may indicate serious collection issues.

A healthy aging report typically shows most receivables in the Current and 1-30 days buckets, with minimal amounts in the older buckets. An unhealthy report shows significant amounts in the 31-60 days and Over 90 days buckets.