Time to Revenue Calculator
Measures the elapsed time from project start to payment receipt, identifying cash flow gaps and collection inefficiencies. Calculates average cycle time, outstanding receivables, and collection rate to help freelancers optimize their payment workflows.
Freelance - Time To Revenue Calculator.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- Long gaps between completing work and receiving payment
- No visibility into average days-to-payment across clients
- Cash flow crunches caused by stacked payment delays
- Inability to identify which clients consistently pay late
- Not knowing the true cost of delayed payments on working capital
Who This Is For
- Freelancers experiencing cash flow gaps between projects
- Solo business owners managing invoicing and collections
- Bookkeepers optimizing payment terms for freelance clients
- Financial planners advising self-employed professionals
Inputs
- textProject/invoice name
- $Invoice amount
- dateInvoice sent date
- datePayment received date
- #Payment terms (net days)
Outputs
- Average days to payment
- Collection efficiency ratio
- Outstanding receivables total
- Cash flow gap timeline
- Late payment frequency by client
- Estimated working capital cost of delays
How Calculations Work
The calculator computes the difference between invoice date and payment date for each entry, then averages across all invoices to produce cycle time metrics. Collection efficiency is the ratio of on-time payments to total invoices. Outstanding receivables are summed for unpaid invoices. A timeline chart plots invoice and payment dates to visualize cash flow gaps.
Example Use Case
Scenario: A freelancer has 10 invoices totaling $45,000 over 3 months. Average payment terms are net-30. Six invoices were paid on time, three were paid at net-45, and one is outstanding at net-60.
Result: Average days to payment: 34. Collection efficiency: 60%. Outstanding receivables: $5,200. Estimated working capital cost at 8% annual rate: $68 on the overdue invoice.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
What is collection efficiency?
The percentage of invoices paid within the agreed payment terms. A 100% rate means every client pays on time.
How do I handle partial payments?
Enter each partial payment as a separate line with the same invoice reference. The calculator will track the remaining balance.
What is the cost of delayed payments?
It is the implicit interest cost of not having the money. Calculated as: outstanding amount multiplied by your cost of capital multiplied by days overdue, divided by 365.
Should I include deposits and milestones?
Yes. Enter each payment event separately to get accurate cycle time measurements for each cash inflow.
How can I reduce my average cycle time?
Require deposits, shorten payment terms (net-15 instead of net-30), send invoices immediately upon delivery, and follow up on day one past due.
Download Time to Revenue Calculator
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.