About the Accounts Receivable Aging Tool
This accounts receivable aging tool turns a simple list of open invoices into an aging report. Paste one invoice per line with the customer name, invoice date and amount, set the report date and your payment terms, and it sorts every balance into aging buckets — current, 1–30, 31–60, 61–90 and over 90 days past due — with subtotals for each customer and the whole ledger.
It is built for bookkeepers, small business owners, credit controllers and accountants preparing month-end close, chasing collections or estimating an allowance for doubtful accounts. Alongside the buckets it shows the dollar-weighted average age of receivables, the average days past due and the share of the ledger more than 90 days late, which are the figures lenders and auditors usually ask about.
You can age by due date (days past the payment terms, the most common view for collections) or by invoice date (0–30, 31–60, 61–90, 91–120 and 120+ days old). Every invoice is assumed to share the same terms; credit notes can be entered as negative amounts. Nothing you paste leaves your browser.
With the default inputs, the total accounts receivable is $36,750.00. Change any value above to recalculate instantly.
How to use the accounts receivable aging tool
- 1Export or type your open invoices, one per line: customer | invoice date | open amount.
- 2Set the report date — usually the last day of the month.
- 3Choose whether to age by due date or by invoice date, and enter your payment terms.
- 4Review the bucket totals, the share past due and the weighted average age.
- 5Use the customer table to plan collection calls, starting with the oldest balances.
Formula and method
Each invoice’s age is the number of calendar days from its invoice date to the report date. When aging by due date, days past due equals age minus your payment terms: zero or less is current, and positive values fall into the 1–30, 31–60, 61–90 or over-90 bucket. When aging by invoice date, the age itself is bucketed into 0–30, 31–60, 61–90, 91–120 and over 120 days.
The weighted average age multiplies each invoice amount by its age, adds them up and divides by the total, so large old invoices count more than small ones. Credit notes (negative amounts) reduce bucket totals but are left out of the weighted averages so they do not distort the days figures.
- Age
- Calendar days from invoice date to the report date
- Terms
- Net payment terms in days (e.g. 30 for net 30)
- Amount
- Open (unpaid) balance on the invoice
Worked examples
Month-end aging on net 30 terms
As of 30 September 2026, Acme’s 15-day-old $12,000 invoice and Delta’s 29-day-old $6,000 invoice are not yet due ($18,000 current). Blue Ridge’s invoice is 36 days old, 6 days past due. Acme’s July invoice is 42 days late, Delta’s June invoice 64 days late and Cobalt’s May invoice 113 days late. $18,750 (51%) is past due, and the dollar-weighted age is about 46.4 days.
Same ledger aged by invoice date
Aging by invoice date puts the 15- and 29-day-old invoices in 0–30 days ($18,000), the 36-day-old invoice in 31–60, the 72-day-old invoice in 61–90, the 94-day-old invoice in 91–120 and Cobalt’s 143-day-old invoice in the over-120 bucket.
Small ledger with a credit note
South Ltd’s invoice is exactly 30 days old, so it is due today and still current; the $500 credit note also sits in current, leaving $1,500. North Co’s March invoice is 213 days old — 183 days past due — so $5,000 lands in the over-90 bucket.
Frequently asked questions
What is an accounts receivable aging report?+
An AR aging report lists unpaid customer invoices grouped by how long they have been outstanding — typically current, 1–30, 31–60, 61–90 and over 90 days past due. It shows which customers are paying late and how much cash is at risk of not being collected.
Should I age receivables by invoice date or due date?+
Due-date aging shows how late customers are against your terms and is best for collections. Invoice-date aging shows how old the receivable is regardless of terms and is often used when customers have different terms or for allowance estimates. Both are acceptable if applied consistently.
What percentage of AR over 90 days is acceptable?+
There is no universal rule, but many lenders treat receivables more than 90 days past due as ineligible collateral, and a rising share in that bucket is a warning sign. Compare the trend month to month and against your industry norms.
How is the aging report used for bad debt?+
Under the aging method of estimating uncollectible accounts, you apply a higher loss percentage to older buckets — for example 1% of current and 50% of over-90 balances — and the total is the required allowance for doubtful accounts at period end.
How often should I run an AR aging report?+
At least monthly as part of the close, and weekly if collections are a concern. Running it on a fixed date, such as the last day of the month, makes the bucket totals comparable over time.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.