Online Receipt Generator
Accounts Receivable

Collection Effectiveness Index Calculator

Measure how much of what you could collect in a period you actually collected, with a rating.

Result

Collected in period

$105,000.00

Collectible in period

$125,000.00

Collection Effectiveness Index

84%

Rating

Good (80–90%)

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How it's calculated

CEI = (beginning AR + credit sales − ending total AR) ÷ (beginning AR + credit sales − ending current AR) × 100. Close to 100% means almost everything that came due was collected; above 80% is generally considered good.

The collection effectiveness index (CEI) shows what share of collectible receivables you actually collected in a period. It focuses on invoices that were due. This makes it less sensitive to sales growth than DSO. The calculator also gives a rating.

The formula

Collected   = beginning AR + credit sales - ending total AR
Collectible = beginning AR + credit sales - ending current AR
CEI         = collected / collectible x 100

Ratings: 90% or more is excellent, 80% or more is good, 70% or more is fair, and below 70% needs attention.

Worked example

A business reviews one month:

  • Beginning AR: $40,000
  • Credit sales for the period: $100,000
  • Ending total AR: $35,000
  • Ending current (not yet due) AR: $15,000

Collected: $40,000 + $100,000 - $35,000 = $105,000

Collectible: $40,000 + $100,000 - $15,000 = $125,000

CEI: $105,000 / $125,000 x 100 = 84%

The rating is Good.

How to read the result

A CEI of 84% means the business collected most, but not all, of what was due. The missing 16% sits in overdue invoices. Check the AR aging calculator to see how old they are.

Points to remember:

  • Use one consistent period. Monthly figures react quickly. Quarterly figures are smoother.
  • Define current clearly. Invoices not yet due must be separate from overdue ones. Wrong splits distort CEI.
  • Do not chase one number. Pushing CEI up with aggressive collection can damage customer relations.
  • Rating bands are guides. Terms and industry change what is realistic.

Methods vary, so check your reporting rules with an accountant. The guide on the collection effectiveness index covers the metric in detail.

Related tools

Frequently asked questions

What is the collection effectiveness index?
CEI measures how much of the money you could collect in a period you actually collected. It is shown as a percentage. A value close to 100% means almost everything that came due was paid.
How do you calculate CEI?
Subtract ending total AR from beginning AR plus credit sales. Divide that by beginning AR plus credit sales minus ending current AR. Multiply by 100. The calculator does these steps for you.
What is a good CEI score?
This calculator rates 90% or more as excellent, 80% to 90% as good, 70% to 80% as fair and below 70% as needing attention. These bands are rules of thumb. Your own trend matters more.
What is the difference between CEI and DSO?
DSO measures time. CEI measures the share collected. DSO moves with sales volume, while CEI looks at what was due and what was paid. Use both for a full view.
What counts as current receivables?
Current receivables are invoices not yet due at the end of the period. They are removed from the collectible amount, because customers owe them later and cannot be blamed for not paying yet.