AllCalculators

Reorder Point & Safety Stock Calculator

Know when to reorder so new stock arrives before you run out, with a safety buffer.

How it works, examples & FAQ

Reorder point

317 units

Safety stock

37 units

Lead-time demand

280 units

Days of stock on hand

25.0

Reorder

In about 9 days

Economic order quantity (EOQ)

605 units

How it's calculated

Reorder point = average daily sales × lead time + safety stock. Safety stock = Z × standard deviation of daily sales × √lead time, or max daily sales × max lead time − average daily sales × average lead time.

Enter your own costs and fee rates — they vary by platform, plan, and country. Results are estimates for planning.

The Complete Guide to Reorder Points and Safety Stock

By Arshi Khan, Founder of Just4Marketing · Last reviewed October 2026

Running out of a best-seller loses sales and, on marketplaces, can hurt your ranking; ordering too early ties up cash in stock. The reorder point tells you exactly when to place the next order so it arrives before you run out, with a safety buffer for slow suppliers and busy weeks. This guide explains both common methods and how to choose an order quantity.

Safety stock at different service levels

20/day average, σ = 6, 14-day lead timeZSafety stockReorder point
90%1.2829 units309 units
95%1.64537 units317 units
97.5%1.9645 units325 units
99%2.3353 units333 units

Getting good inputs

  • Use recent sales

    Average the last 30–90 days, and adjust for known seasonal peaks rather than relying on a yearly average.

  • Measure lead time door to door

    Count from placing the order to stock being available to sell, including production, shipping, customs, and warehouse check-in.

  • Standard deviation

    Most spreadsheets calculate it with STDEV over your daily sales. If you don't have it, use the max–average method instead.

Frequently asked questions

How is the reorder point calculated?

Reorder point = average daily sales × lead time in days + safety stock. When your stock falls to this level, place a new order. With 20 sales a day, a 14-day lead time, and 37 units of safety stock, the reorder point is 317 units.

How do I calculate safety stock?

The statistical method uses safety stock = Z × standard deviation of daily sales × √lead time, where Z depends on the service level you want (1.645 for 95%). The simpler max–average method uses (maximum daily sales × maximum lead time) − (average daily sales × average lead time).

What service level should I choose?

95% is a common choice: you'd expect to run out during about 1 in 20 restock cycles. Use 97.5%–99% for best-sellers where stock-outs are costly, and 90% for slow movers where holding extra stock costs more than an occasional stock-out.

What is economic order quantity (EOQ)?

EOQ is the order size that minimizes the combined cost of placing orders and holding stock: √(2 × annual demand × cost per order ÷ holding cost per unit per year). It's a starting point — supplier minimums and price breaks often matter more.

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