Accounts Payable Turnover Formula: Excel, DAX, Calculator & Example

Simple formula

Net Credit Purchases / Average Accounts Payable

The formula uses these inputs:

Net Credit Purchases: enter your value in the calculator or spreadsheet.
Average Accounts Payable: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Accounts Payable Turnover =
DIVIDE(
    [Net Credit Purchases],
    [Average Accounts Payable]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS accounts_payable_turnover
FROM kpi_data;

Accounts Payable Turnover calculator

Net Credit Purchases Average Accounts Payable

Result—

How to interpret Accounts Payable Turnover

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

Mixing different time periods in the numerator and denominator.
Using totals that do not match the KPI definition used by your company.
Comparing results across teams or industries without context.

Related KPI formulas

Frequently asked questions

What is the Accounts Payable Turnover formula?

The common Accounts Payable Turnover formula is: Net Credit Purchases / Average Accounts Payable.

How do you calculate Accounts Payable Turnover in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.

Accounts Payable Turnover Formula

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