Accounts Receivable
AR Aging Calculator
Break overdue receivables into aging buckets and estimate the bad-debt allowance you need.
Result
Total
$37,000.00
Share over 60 days
18.92%
Allowance as % of receivables
6.08%
Expected to collect
$34,750.00
Bad-debt allowance needed
$2,250.00
Aging breakdown
| Bucket | Amount | Share | Loss rate | Expected loss |
|---|---|---|---|---|
| 1–30 days | $20,000.00 | 54.05% | 1% | $200.00 |
| 31–60 days | $10,000.00 | 27.03% | 5% | $500.00 |
| 61–90 days | $5,000.00 | 13.51% | 15% | $750.00 |
| 90+ days | $2,000.00 | 5.41% | 40% | $800.00 |
How it's calculated
Each bucket's expected loss = amount × its loss rate; the allowance is the sum. The older the debt, the less likely it is to be paid, so loss rates rise with age — adjust the defaults to your own history.