Weighted Average Bill Maturity Calculator
Calculate the amount-weighted average maturity (in days) of several cheques or notes, with the total amount and the unrounded average.
Things to keep in mind:
- At most 5 documents can be entered; for more, group them and average each group first.
- The average maturity is an approximation; interest computed per document may differ slightly.
- Business-day shifts and holidays are ignored; enter calendar days.
Calculator
Result
Enter the values and press Calculate to see the result here.
About this tool
When trade receivables are collected through cheques and notes with different maturities, a single average maturity makes discounting, factoring or term-charge calculations easier. This tool weights each document's maturity by its amount to find the combined maturity; up to 5 documents can be entered.
Formula
- Total amount = A₁ + A₂ + … + Aₙ
- Weighted average maturity = (A₁×D₁ + A₂×D₂ + … + Aₙ×Dₙ) / (A₁ + A₂ + … + Aₙ)
A is the document amount and D the number of days from today (a common start date) to its maturity. The average is rounded to the nearest whole day (half up); the unrounded value is also given with 2 decimals. If the total amount is 0 the average is 0.
Example 1: two notes of TRY 1,200 due in 20 days and TRY 800 due in 41 days. Weighted sum = 1,200×20 + 800×41 = 24,000 + 32,800 = 56,800; total TRY 2,000; average maturity 56,800 / 2,000 = 28.4 days (28 days rounded to the nearest day).
Example 2: four documents of TRY 12,500.50 due in 15 days, TRY 8,200 in 45 days, TRY 3,300.25 in 90 days and TRY 5,000 in 120 days give a total of TRY 29,000.75 and a weighted average maturity of 50.12 days (50 days rounded).
How to read the result: The weighted average maturity shows, amount-wise, in how many days the portfolio is collected on average; a larger document influences the result more. You can use it as the single maturity in term-charge or discount calculators, but it is an approximation, so interest computed per document may differ slightly. Measure all documents from the same start date and enter calendar days.
How to use
- Enter the face value of each document.
- On the same row enter the days from a common start date to that document's maturity.
- Leave unused rows at 0 (up to 5 documents).
- Press Calculate and read the average maturity in days.
Notes
The average is rounded to the nearest whole day (HALF_UP); the unrounded value is also given with 2 decimals. All day counts must be measured from the same start date. If the total amount is 0 the average is 0.
Sources
Frequently asked questions
A simple average gives every document equal weight. In the weighted average a larger document influences the result more, which reflects financing cost more accurately.
Start from today or from the invoice date. What matters is using the same start date for every document.
Use it as the maturity in the factoring cost, TCMB bill-discount or commercial term-charge tools.
The result is rounded to the nearest whole day. See the decimal output for the unrounded value.
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