1. What is Days Past Due (DPD)?

Days Past Due (DPD) is a measure of how many days a payment or obligation is overdue. It's calculated as the difference between the current date and the due date. Positive values indicate days past due, while negative values indicate days remaining until the due date.

2. How Does the Calculator Work?

The calculator uses the simple DPD formula:

Where:

• \( Current\ Date \) — The date when the calculation is being performed
• \( Due\ Date \) — The date when the payment or obligation was due

Explanation: The calculation simply subtracts the due date from the current date to determine how many days have passed since the due date (or how many days remain until the due date).

3. Importance of DPD Calculation

Details: DPD is crucial for financial management, credit risk assessment, and collections processes. It helps businesses track overdue payments, assess customer creditworthiness, and prioritize collection efforts.

4. Using the Calculator

Tips: Enter the current date (defaults to today) and the due date. The calculator will show the DPD value - positive for overdue, negative for days remaining.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative DPD mean?
A: A negative DPD indicates the number of days remaining until the due date. For example, -5 means there are 5 days left before the payment is due.

Q2: How is DPD used in credit scoring?
A: DPD is often used to categorize delinquencies (e.g., 30 DPD, 60 DPD, 90 DPD) which affect credit scores differently. Higher DPD values indicate more severe delinquency.

Q3: Does DPD include weekends and holidays?
A: Yes, this basic DPD calculation counts all calendar days. Some industries may use business day calculations instead.

Q4: What's the difference between DPD and delinquency status?
A: DPD is a precise count of days overdue, while delinquency status (e.g., current, 30 days late) typically uses predefined buckets.

Q5: Can DPD be used for non-financial due dates?
A: Absolutely! DPD can track any kind of deadline - project milestones, service level agreements, or personal reminders.