Average Payment Period from Trade Payables Turnover Ratio

Formula

Average Payment Period = 365 ÷ Trade Payables Turnover Ratio

Worked example

A trade payables turnover ratio of 6 times gives an average payment period of about 60.83 days.

The interactive calculator on this page accepts your own question values and displays the final answer with step-by-step working.

Frequently asked questions

What formula does the Average Payment Period Calculator use?

This calculator uses: Average Payment Period = 365 ÷ Trade Payables Turnover Ratio. The interactive page shows the working step by step.

Is the Average Payment Period Calculator free?

Yes. It is free to use and does not require a login.

Can I use the calculator for exam preparation?

Yes. Use it to check numerical working and then practise writing the formula, substitution and final answer yourself.

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