CECL calculator for trade receivables
Bring your accounts receivable aging report — from QuickBooks, Xero or your ledger, exactly as it exported — and get the allowance for credit losses under ASC 326, the journal entry and a draft note with the roll-forward. Free, with nothing to sign up for.
Credit loss allowance
The allowance, the journal entry and a draft disclosure note.
Try it with a sample receivables ageing
Use these fictional figures to explore the workflow before bringing in your own file. They are demonstration data, not a required template.
Upload the file above, confirm the company and reporting date, and choose USD. Check that the receivables total is 100,000: 70,000 current, 15,000 at 1–30 days, 10,000 at 31–60 days, 3,000 at 61–90 days and 2,000 over 90 days.
The sample contains balances, not loss rates. Review the assumptions before calculating. The published example below has its own balances and rates, so its allowance will differ.
Checked against the standard
These are the FASB’s own worked examples, run through the same calculation your file goes through — not copied from the published answer.
Example 5 — aging schedule, adjusted for an improving outlook ASC 326-20-55-37 to 55-40
| Days past due | Receivables | Loss rate | Allowance |
|---|---|---|---|
| Current | $5,984,698 | 0.27% | $16,158.68 |
| 1–30 days past due | $8,272 | 7.2% | $595.58 |
| 31–60 days past due | $2,882 | 23.4% | $674.39 |
| 61–90 days past due | $842 | 52.2% | $439.52 |
| More than 90 days past due | $1,100 | 73.8% | $811.80 |
| Total | $5,997,794 | $18,679.97 |
The example prints $18,681 — each category rounded to the whole dollar, then added. The engine carries cents and adds first, giving $18,679.97; rounded category by category it gives $18,681. Same measurement, a different order of rounding.
Example 5A, Case 1 — the ASU 2025-05 practical expedient ASC 326-20-55-40A onward
| Days past due | Receivables | Loss rate | Allowance |
|---|---|---|---|
| Current | $5,984,698 | 0.3% | $17,954.09 |
| 1–30 days past due | $8,272 | 8% | $661.76 |
| 31–60 days past due | $2,882 | 26% | $749.32 |
| 61–90 days past due | $841 | 58% | $487.78 |
| 91–120 days past due | $554 | 82% | $454.28 |
| More than 120 days past due | $342 | 99% | $338.58 |
| Total | $5,997,589 | $20,645.81 |
The example prints $20,646 — the sum, rounded to the whole dollar. The engine's $20,645.81 rounds to the same figure.
What it does
- Reads the aging as your system printed it: the title lines, the bands across the top, the report’s own total line — which it leaves out rather than counting the book twice.
- Measures each balance at the loss rate for its days-past-due category, over its whole remaining life. No stages, no twelve-month horizon.
- For a private company that elected the practical expedient, counts what customers paid after the year end, and measures what is still unpaid at the rate for how late it is by then (ASC 326-20-30-10E) — which can raise the allowance, as it does in the FASB’s own Case 3.
- Posts the provision — the change in the allowance after write-offs and recoveries — to credit loss expense (the entries, worked through), and drafts the note: the method, the practical expedient if you elected it, and the roll-forward ASC 326-20-50-13 asks for.
What it will not do yet
- Measure revolving lines, overdrafts, cards, leases, unfunded commitments or available-for-sale debt under CECL. Term loans it measures, by the weighted-average remaining maturity method.
- Produce the vintage disclosures that apply only to public business entities.
Each of these is refused or left as a placeholder in the note, never approximated. The practical expedient and the collections election are worked through, with all four of the FASB’s cases, on the ASU 2025-05 page. Under IFRS 9 instead? use the IFRS 9 provision matrix calculator, or see how the two standards differ.
Questions
Is an aging schedule allowed under CECL?
- Yes. ASC 326-20-30-3 lists an aging schedule among the methods an entity may use to estimate expected credit losses, and Example 5 at ASC 326-20-55-37 works one through for trade receivables.
Does the current bucket need a loss rate?
- Yes. Expected credit losses are measured even where the risk of loss is remote (ASC 326-20-30-10). In Example 5 the current bucket carries 0.27%, and it is most of the allowance.
What does the ASU 2025-05 practical expedient do?
- For current receivables and contract assets from contracts with customers, it lets you assume that conditions at the balance sheet date do not change over the assets' remaining life, instead of building a forecast (ASC 326-20-30-10C). You still adjust historical loss rates for current conditions. It applies to annual periods beginning after 15 December 2025, and it can be adopted early.
Can a private company count cash collected after year end?
- If it is not a public business entity and has elected the practical expedient, yes (ASC 326-20-30-10E). Balances collected by a date it chooses — no later than when the statements are available to be issued — carry no allowance, and what is still unpaid is measured at the rate for how late it is by then. That can raise the allowance as well as lower it. This calculator applies the election: for each category, say what was still unpaid on that date.
Does it measure loans under CECL?
- Term loans, yes, by the weighted-average remaining maturity method the FASB staff describe (Staff Q&A, Topic 326, No. 1): each pool's annual charge-off rate on its projected balance over the loans' remaining contractual life, plus an adjustment for current conditions and forecasts. You give each pool its rates from your own history. Revolving lines, overdrafts and cards have no contractual term to run off over, and are refused rather than approximated.
Where does my file go?
- It is sent to be measured and stored nowhere once the answer comes back. Your work is kept in your own browser, and there is nothing to sign up for.