Reorder Point Calculator
Find the exact stock level at which to reorder — so you never run out, and never over-order.
What is a reorder point?
A reorder point (ROP) is the inventory level that should trigger a replenishment order. When a SKU drops to this number, you place a purchase order so the new shipment lands just as the remaining stock runs low. Every SKU has its own reorder point because each one sells at a different rate and may come from a different supplier.
The reorder point formula
Reorder point = (Average daily usage × Lead time in days) + Safety stock. The first term is your lead-time demand — the units you'll sell while waiting for the order to arrive. Safety stock is the cushion that absorbs demand spikes and late deliveries so a normal wobble doesn't become a stockout.
Worked example
Say you sell 40 units a day, your supplier takes 7 days to deliver, and you hold 50 units of safety stock. Lead-time demand is 40 × 7 = 280 units. Add safety stock: 280 + 50 = a reorder point of 330 units. Once that SKU hits 330 on hand, it is time to place the order.
Why it matters
Set the reorder point too low and you stock out, lose sales, and disappoint customers. Set it too high and you tie up cash in inventory you didn't need yet. Reorder points are most useful when they update automatically as demand and lead times change — which is exactly what WareSquared does for every SKU.
Frequently asked questions
How is a reorder point different from reorder quantity?
The reorder point tells you WHEN to order; the reorder quantity tells you HOW MUCH to order. Pair this calculator with our EOQ calculator to size the order itself.
How do I work out my safety stock?
A common method is (max daily usage × max lead time) − (average daily usage × average lead time). Higher demand variability and longer lead times call for more safety stock.
How often should I recalculate reorder points?
Review them at least quarterly, and any time a supplier's lead time changes or a product's sales trend shifts. Software that recalculates continuously keeps every SKU accurate without manual work.
Does the reorder point include stock already on order?
Compare the reorder point against your inventory position — on-hand plus stock already on a purchase order — not just on-hand units, so you don't double-order.
More free tools
Stop running the numbers by hand
WareSquared tracks reorder points, stock levels, barcodes, and orders for every SKU automatically — so the figures stay right without a spreadsheet in sight.
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