Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Current days in AR
41.7
Days to cut to reach target
3.7
Cash freed by reaching target
$42,740
Average daily charge volume
$11,507
AR balance at target days
$437,260
Psst — share this and help Rex grow
One click, a permanent link with your numbers baked in.
How to use this
- 1Enter total accounts receivable outstanding ($).
- 2Enter annual gross charges billed ($).
- 3Enter target days in ar.
- 4Read your current days in ar on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Days in AR (also called Days Sales Outstanding for healthcare) tells you the average number of days it takes to collect payment after a charge is billed. It's one of the clearest signals of revenue cycle health — a well-run practice with clean claims and efficient payer contracts sits at 30-40 days, while practices with heavy denial rework, slow payer contracts, or high patient-responsibility balances can drift to 60-90+ days. This calculator divides your total outstanding accounts receivable by average daily charges to compute days in AR, then estimates the cash flow impact of shaving that number down, since every day of AR reduction frees up roughly one day's worth of average charges in available cash. Track this monthly by payer category too, since Medicaid and self-pay balances typically run far higher days in AR than commercial insurance.
Worked example
Using the values the calculator loads with:
Inputs
- Total accounts receivable outstanding: 480000 $
- Annual gross charges billed: 4200000 $
- Target days in AR: 38
Results
- Current days in AR: 41.7
- Days to cut to reach target: 3.7
- Cash freed by reaching target: $42,740
- Average daily charge volume: $11,507
- AR balance at target days: $437,260
What each field means
Inputs
- Total accounts receivable outstanding ($)
- The total accounts receivable outstanding used in the calculation, measured in $. Starts at 480000 $ so you have a working example on load.
- Annual gross charges billed ($)
- The annual gross charges billed used in the calculation, measured in $. Starts at 4200000 $ so you have a working example on load.
- Target days in AR
- The target days in ar used in the calculation. Starts at 38 so you have a working example on load.
Results
- Current days in AR
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Days to cut to reach target
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Cash freed by reaching target
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Average daily charge volume
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- AR balance at target days
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What's a good days in AR benchmark?
MGMA benchmarks put top-performing practices at 30-35 days, average practices at 40-50 days, and practices with revenue cycle problems at 60+ days. Specialty and payer mix matter — practices with more Medicaid or self-pay patients naturally run higher.
Why does days in AR matter more than total AR dollars?
Total AR dollars grows naturally as a practice grows, so it's not a useful trend metric on its own. Days in AR normalizes for volume and tells you whether collections are getting faster or slower relative to how much you're billing, which is the operational signal that matters.
What moves days in AR down fastest?
Clean claim submission (reducing denials at the source), faster patient statement cycles, and following up on claims older than 30 days before they age into harder-to-collect buckets. Practices that review AR aging weekly instead of monthly typically see the fastest improvement.
Should self-pay and patient-responsibility balances be included?
Yes, include them in total AR, but track them separately in your aging report since they behave very differently — patient balances often take 90+ days and need active statement and payment-plan follow-up, unlike payer claims which follow contracted timelines.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Days in AR Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/days-in-ar-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/days-in-ar-calculator" target="_blank" rel="noopener">Days in AR Calculator — RevenueLab</a> (2026).</p>
Source: [Days in AR Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/days-in-ar-calculator) (2026).