Cash Conversion Cycle Calculator

How to use this calculator

The formula: CCC = DIO + DSO − DPO

The cash conversion cycle is the number of days between paying for stock and collecting the cash from customers. It is built from three day-counts, each one a balance-sheet figure divided by an income-statement flow: DIO (days inventory outstanding) = average inventory ÷ COGS × days; DSO (days sales outstanding) = accounts receivable ÷ revenue × days; DPO (days payables outstanding) = accounts payable ÷ COGS × days. The cycle is DIO + DSO − DPO: inventory days plus collection days, less the days your suppliers fund you. The operating cycle — DIO + DSO — is the total time from buying stock to collecting the cash; subtracting DPO gives the part you fund yourself. The formula is the standard one, verified 12 November 2026 against Investopedia’s Cash Conversion Cycle explainer.

A negative CCC means you collect from customers before you pay for the stock — your suppliers fund your cycle. Amazon itself runs a negative cycle for the same reason. This calculator shows a negative CCC plainly, in green, rather than hiding it behind a “good” label: no verified benchmark says what a good CCC is for a marketplace seller, so this page does not invent one.

The complete cycle — not just the payout hold

A payout-hold planner answers one question: how long Amazon holds your money. This calculator answers the whole one: how much cash your entire order-to-cash cycle ties up, and what each lever is worth. That is the honest positioning — a free DD+7-only planner already exists (SellerShock), so this is not a first-to-market claim. It is the complete version: supplier terms, stock, sell-through, the payout hold and growth, in one place.

Amazon’s Delivery Date Based Reserve (DD+7) is the hold sellers feel most: since 12 March 2026 Amazon holds US and Canadian sellers’ funds for 7 days after confirmed delivery, with no opt-out, and Express Payout — default since 21 September 2026 — shortens only the final bank transfer to about a day. The 7-day hold is unchanged. But the hold is only the last leg of the wait. Before it comes the supplier lead time, the freight, the FBA check-in, and the days the stock sits before it sells — and after it, the growth that locks up more cash every month. Add the legs together and the working capital requirement is usually a multiple of the payout hold alone. That is the number to fund before the sales land, not after.

What the three levers are worth — and what they cost

The sensitivity table ranks the levers by cash freed, but each one has a real-world price. Cutting inventory frees cash at your COGS rate and is usually the fastest win — and the fastest way to a stockout if you cut the wrong SKU. Collecting faster frees cash at your revenue rate, the bigger number, but on a marketplace you do not control the payout clock: DD+7 is fixed, so the lever is really about which channels you sell on and how fast you ship. Paying suppliers later frees cash at your COGS rate and costs nothing on paper — until the supplier tightens terms, raises prices, or ships your competitor first. Run your own numbers in the table, then weigh the cash against the relationship. The combined row shows what all three together are worth; it is the honest ceiling, not a promise.

What this tool deliberately does not model: your exact supplier lead time and freight days (they sit inside DIO — if your stock takes 30 days to arrive, your DIO already shows it), the Account Level Reserve percentage (it varies by account health and is not published per seller — it sits inside DSO as extra days), or a “good” CCC for your category (no verified benchmark exists, so none is shown). Enter your real averages, read the cash, and fund the gap before growth creates it.

Educational tool — not financial advice. This page uses the standard cash conversion cycle formula (Investopedia), verified 12 November 2026. It is not financial advice, and it is not a substitute for your accountant. Your accountant’s view of your working capital is the final word.