Free tool
AR aging calculator
This free AR aging calculator takes the open balance in each aging bucket (current, 1 to 30, 31 to 60, 61 to 90 and over 90 days) and shows the share in each bucket, an estimated collectible amount using typical recovery rates by age, and the balance at risk. Estimates only.
AR aging calculator
Total open receivables
$250,000
Share over 90 days
8.8%
Estimated collectible amount
$222,600
Balance at risk
$27,400
Estimates for orientation only. Not a LedgerBPO price or a promise. See assumptions below.
How the calculator works
Total = sum of buckets. Share over 90 = over-90 bucket ÷ total. Estimated collectible = current × 98% + 1 to 30 × 95% + 31 to 60 × 85% + 61 to 90 × 70% + over 90 × 45%. Balance at risk = total − estimated collectible.
Assumptions and sources
- Recovery rates by age are illustrative planning assumptions, not a forecast; your own history should replace them.
- Over-90 balances in B2B trade fall sharply in collectibility; commercial collection industry data has long shown recovery dropping to roughly half or less after 90 days; the calculator uses that shape as an orientation figure, not a prediction for your ledger.
- Balances in dispute should be tracked separately because they are not late, they are unresolved.
What to do with your result
If more than 15% of your balance is over 90 days, read the AR follow-up calls and payment reminders pages. Both run under your brand with a promise-to-pay log you can see.
Frequently asked questions
What percentage of AR over 90 days is too high?
Most finance teams treat anything above 10 to 15% of open balances as a warning sign. Above 20% usually means the reminder cadence has stopped or disputes are not being resolved. Healthcare payer AR runs on its own benchmarks.
Where do the recovery rates come from?
They are planning assumptions based on the well-documented pattern that collectibility drops with age. Replace them with your own write-off history for a better estimate; the assumptions section marks the source we still need to cite.
How do I get the bucket balances?
Run the AR aging summary in QuickBooks Online, Xero, Zoho Books or Sage as of today. The report groups open invoices by days past due; copy the totals into the calculator.
Can LedgerBPO clean up an old AR ledger?
Yes. We start with a full aging review, log disputes and wrong contacts, then run reminders and first-party calls by bucket. Uncollectible balances are documented for your write-off decision; we never act as a third-party collector.
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