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Slow payment is a constant problem in commercial restoration, and plenty of owners have never put a number on it. This calculator shows how much cash is tied up in your receivables right now, and how much you would free by collecting a little faster.

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Three ways to use this calculator

• On a computer: run it right below. Four inputs, and the cash tied up in your accounts receivable (AR) updates as you type.
• On a phone, or to keep your numbers: make your own copy in Google Sheets. Your copy opens with the worked example's numbers; type over them with your own.
• No Google account? Download it for Excel and open it in Excel or any spreadsheet app. </aside>

https://gem-resource-hub-calculators.nyc3.cdn.digitaloceanspaces.com/slow-pay/index.html

How to use it: in your Google Sheets or Excel copy, edit only the highlighted input cells (your average monthly revenue, your days to get paid, your target days, and the optional line-of-credit rate). The results update automatically.

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The formula. This page carries the rules and the sheet does the arithmetic. If the two ever disagree, the page governs and the sheet gets corrected.

• Daily revenue = (average monthly revenue × 12) ÷ 365
• Cash tied up in AR = daily revenue × days to get paid
• Cash tied up at your target = daily revenue × target days
• Cash freed = daily revenue × (days to get paid − target days)
• Annual interest saved = cash freed × your line-of-credit rate. This line only means something if you are actually carrying a balance on that line. If you never draw on it, the freed cash is still real, but the interest saving is zero and you should read that row as zero. </aside>

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Worked example. $250,000 average monthly revenue, 68 days to get paid today, a 45-day target, a 10% line-of-credit rate.

• Daily revenue: ($250,000 × 12) ÷ 365 = $3,000,000 ÷ 365 = $8,219 (rounded to the dollar, and every line below uses the rounded figure)
• Cash tied up in AR today: $8,219 × 68 = $558,892
• Cash tied up at 45 days: $8,219 × 45 = $369,855
• Cash freed by closing the 23-day gap: $8,219 × 23 = $189,037
• Annual interest saved at 10%: $189,037 × 10% = $18,904

The $189,037 is the number worth sitting with. That is your own money, already earned on work already delivered, funding somebody else's operation for 23 days.

What the number decides. It sizes one trade: what you would spend to collect faster, against what collecting faster returns. Put the freed-cash figure next to the cost of a named AR owner running a weekly aging review, and the decision is usually clear. Record today's days to get paid, the target you picked, and the date, then measure the same way in 90 days. Days to get paid is the only input on this page you control directly.

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Important: please read. This tool is provided free of charge by RocketLevel as a general, educational estimate and starting point only. The results are illustrative estimates based solely on the figures you enter; they are not a guarantee of any outcome, value, cost, or result, and they are not legal, financial, tax, accounting, insurance, or other professional advice. Using this tool does not create an attorney-client, advisory, or other professional relationship with RocketLevel. RocketLevel makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, or suitability of this tool for your situation, and provides it "as is." You are solely responsible for verifying any figures and for consulting your own attorney, accountant, financial professional, or other qualified advisor before making any decision. To the fullest extent permitted by law, RocketLevel and its affiliates, officers, and employees disclaim all liability for any loss, damage, or claim arising from its use.

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Tools for this play

Keep going: Cash Flow for Restoration Owners: Surviving the Lag Between Work and Payment explains why the gap opens, and The Commercial Collections Escalation Ladder: From Friendly Reminder to Final Action closes it account by account.

Do it yourself or have it done. Collecting faster is an internal fix: this calculator, an AR owner, and a weekly aging review, all run by your own office. RocketLevel does not touch billing or collections. Where it fits is upstream, with an inside sales team booking meetings with commercial accounts you choose, so you can favor clients with clean payment terms over the slow ones.

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Part of the free GEM Resource Hub by RocketLevel Commercial. Playbooks and tools for running the whole restoration business, A to Z, while specializing in building commercial revenue you own. RocketLevel is a bolt-on inside sales team that strengthens your commercial pipeline. Explore more in the GEM Resource Hub. New here? About RocketLevel and what the system has produced. When you're ready, see what your market is worth or book a Commercial Growth Call.

How we source figures: every number in this library names its source or is labeled as RocketLevel's own working figure. Read the sourcing standard.

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🏠 GEM Resource Hub · 📚 Library · 📘 About RocketLevel · 📘 Playbooks · 🗺️ What's Your Market Worth? · 📅 Book a Call