Bad debt expense calculator
Estimate an expense or required allowance, and keep the balance-sheet target separate from the journal adjustment.
Your inputs
Use one currency and a consistent reporting period.
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.
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