# DSO (Days Sales Outstanding): SaaS Formula, Benchmarks, and How to Cut It

DevFeed: [DSO (Days Sales Outstanding): SaaS Formula, Benchmarks, and How to Cut It](<https://devfeed.tech/articles/dso-days-sales-outstanding-saas-formula-benchmarks-and-how-to-cut-it-9818.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/dso-days-sales-outstanding-saas/>)

Author: Ayush Agarwal

Published: 2026-06-06T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>)

Tags: [accounts-receivable](<https://devfeed.tech/tags/accounts-receivable.md>), [b2b](<https://devfeed.tech/tags/b2b.md>), [benchmarks](<https://devfeed.tech/tags/benchmarks.md>), [billing](<https://devfeed.tech/tags/billing.md>), [collections](<https://devfeed.tech/tags/collections.md>), [guide](<https://devfeed.tech/tags/guide.md>), [how-to](<https://devfeed.tech/tags/how-to.md>), [metric](<https://devfeed.tech/tags/metric.md>), [operational](<https://devfeed.tech/tags/operational.md>), [reduce](<https://devfeed.tech/tags/reduce.md>), [revenue](<https://devfeed.tech/tags/revenue.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-finance](<https://devfeed.tech/tags/saas-finance.md>)

## AI overview

A guide for SaaS founders explains how to calculate Days Sales Outstanding (DSO), interpret benchmarks across billing models, and reduce collection times. It also covers DSO's effects on working capital, growth, and bad-debt risk.

## Source excerpt

DSO formula explained for SaaS founders. How to calculate days sales outstanding, what good looks like by billing model, and tactical ways to reduce it.