Reorder Point & EOQ Calculator
Stop running out and stop overstocking. Calculate the reorder point with safety stock, and the economic order quantity that keeps total ordering and storage costs as low as possible.
Reorder when stock falls to
How to calculate reorder point and EOQ
- Enter typical and peak daily sales, and typical and longest supplier lead times.
- Enter what each order costs to place (shipping, admin) and the unit cost.
- Enter the yearly cost of holding stock as a percentage of unit cost (storage, insurance, capital); 20–30% is common.
Reorder points and order quantities
The reorder point is the stock level that should trigger a new order: expected sales during the lead time plus safety stock. Safety stock covers the gap between your worst realistic case (peak sales during the longest lead time) and the average, a simple and widely used rule.
The economic order quantity balances two opposing costs: ordering often (many small orders, high ordering cost) versus ordering rarely (large orders, high holding cost). EOQ = √(2 × annual demand × cost per order ÷ annual holding cost per unit). At the EOQ, the two costs are equal and their total is at a minimum.
Use these numbers as a starting point and adjust for supplier minimums, volume discounts, shelf life and seasonality. Track stock levels and reorder points for every product in our inventory tracker.
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Frequently asked questions
What is a reorder point?
The inventory level at which you should place a new order so it arrives before you run out.
How much safety stock should I keep?
A common rule is (max daily sales × max lead time) − (average daily sales × average lead time). More advanced methods use demand variability and a target service level.
What is EOQ?
The order size that minimizes the combined yearly cost of placing orders and holding inventory.
What if my supplier has a minimum order?
Order at least the minimum. If it is far above EOQ, compare the extra holding cost with any price discount.