Ecommerce & Shopify · 100% free

Cash Conversion Cycle Calculator

How many days between paying a supplier and getting cash from a customer, the lifeblood metric for bootstrapped D2C.

Any ecommerce D2C CPG Apparel
Cash Conversion Cycle
27 days
27 days from supplier payment to cash from customer
Days inventory (DIO)
76 days
Days sales outstanding (DSO)
0 days
Usually 0 for D2C
Days payable outstanding (DPO)
49 days
Higher is better
Working capital needed at this cycle
$35,000
Daily COGS × CCC days
How to shorten CCC: negotiate longer payment terms with suppliers (raise DPO), turn inventory faster (cut DIO), require deposits or prepayments for B2B/wholesale (cut DSO). The first unlock is usually DPO — most early D2C brands pay suppliers immediately when 30–60 day terms are common at moderate volume.

About this tool

Cash Conversion Cycle (CCC) = Days Inventory + Days Sales Outstanding − Days Payable Outstanding. Negative CCC = customers pay you before you pay suppliers. Long positive CCC = you finance every cycle yourself. Calculate it across your operating cycle to see how much working capital you actually need.

Why D2C founders ignore this and shouldn't

Most bootstrapped D2C brands can run profitable on paper while starving for cash. CCC is the lens that exposes this: even at 30% net margin, if your CCC is 120 days and you're growing, every month requires more working capital than the last to fund inventory you haven't yet sold.

The DPO conversation

The biggest unlock is usually supplier terms. Once you're past your first few POs, ask for Net 30 or Net 60. Most suppliers will accept Net 30 immediately at moderate volume; Net 60 once you've shown consistent ordering. That alone can drop CCC by 30–60 days.

More free tools

See all tools →
Free forever · No card

Why wait? Try it free today.

Stop managing feeds manually. Start optimising with AI in 30 seconds.

  • 100% free forever, no credit card required
  • 1 brand, 1 feed, 100,000 products per feed
  • Full AI Product Optimisation, Rule Engine, and 200+ channel exports
  • Pay only for AI credits when you need them