# Reorder Point Calculator | Free Tool | Commmerce™

> Calculate when to reorder stock. Prevent stockouts with optimal safety stock and reorder points.

Canonical: https://commmerce.com/tools/reorder-point-calculator.html

Free Tool 

# Reorder Point Calculator

 

Calculate when to reorder stock. Prevent stockouts with optimal safety stock and reorder points.

    Average daily sales (units) Lead time (days) Max daily sales (peak) Max lead time (days)    

#### Related tools

[Reorder Point](reorder-point-calculator.html)[Inventory Days](inventory-days-calculator.html)[SKU Generator](sku-generator.html)[Inventory Valuation](inventory-valuation.html)  **Disclaimer:** This free tool is provided by Commmerce for general informational and estimation purposes only. Results are indicative and may not reflect your exact figures, current tax rates, courier charges, marketplace fees, or regulatory requirements, which change over time and vary by case. Commmerce makes no warranty as to accuracy or completeness and accepts no liability for any loss or decision made based on this tool. Always verify with a qualified professional (chartered accountant, tax advisor, or the relevant official source such as the GST portal or CBIC) before acting.    

## How the Reorder Point Calculator works

 

The reorder point is the stock level at which you should place a fresh order so you do not run out while waiting for delivery. Formula: reorder point = (average daily sales x lead time) + safety stock, where safety stock = (max daily sales x max lead time) - (average daily sales x lead time). Safety stock is the buffer that covers unexpected spikes in demand or delays from the supplier.

 

### Worked example

 

A grocery store sells on average 20 units a day of a product with a 7-day supplier lead time, but on peak days sells up to 35 units and delivery can take up to 10 days. Safety stock = (35x10) - (20x7) = 350 - 140 = 210 units; reorder point = 140 + 210 = 350 units. So when stock drops to 350 units, it is time to reorder.

 

## Frequently asked questions

  What is lead time exactly?

Lead time is the number of days from when you place an order with your supplier to when the stock actually reaches your shelf and is ready to sell. For a local distributor it may be 2-3 days; for imported goods it can be weeks.

 Why do I need safety stock at all?

Because demand and delivery are never perfectly steady. Safety stock covers festival spikes, a sudden rush, or a delayed truck, so you avoid stockouts and lost sales during the wait.

 How do I find my average daily sales?

Take total units sold of that item over a period, say 30 days, and divide by the number of days. Using a recent period keeps the figure realistic for current demand.

 Should I set a higher reorder point before festivals like Diwali?

Yes. Demand and even supplier lead times rise around festivals, so increase your max daily sales and max lead time inputs before Diwali or wedding season to build a bigger buffer.

    

### Commmerce does this automatically for every product

 

Demand forecasting, safety stock, and auto-reorder built into your inventory.

 [See Inventory Management](https://commmerce.com/inventory)     [Book a demo](https://commmerce.com/schedule-demo/)