Bad debt expense calculator

Estimate an expense or required allowance, and keep the balance-sheet target separate from the journal adjustment.

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Your inputs

Use one currency and a consistent reporting period.

Use figures from the same period and currency.
Use figures from the same period and currency.
Choose from your collection history and current conditions.
Credit balance positive; debit balance negative.
Use figures from the same period and currency.
Example rate only; replace with your estimate.
Use figures from the same period and currency.
Example rate only; replace with your estimate.
Use figures from the same period and currency.
Example rate only; replace with your estimate.
Use figures from the same period and currency.
Example rate only; replace with your estimate.
Use figures from the same period and currency.
Example rate only; replace with your estimate.

No sign-up required. Your inputs stay in this browser tab.

Your calculation

Enter your figures and select Calculate.

How the calculation works

Sales method: credit sales × loss rate. Allowance methods: required allowance − existing allowance = expense adjustment.

Use the result as a planning aid. Check the source records and the assumptions before making financial decisions.

Choose the estimation basis

The tool includes percentage of sales, percentage of receivables and an aging analysis. Base loss assumptions on relevant evidence for the receivables being evaluated.

Separate the allowance from the expense

A target allowance is an ending balance. The adjusting expense also depends on the existing allowance balance. A sales-based estimate and a receivables-based allowance are not interchangeable.

Put the numbers to work.

Tell us where you need support with your books, reporting or payroll.

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