Accounting Share · Inventory & purchasing

Reorder Point Calculator

Estimate the stock position at which replenishment should be triggered under a fixed lead-time demand model.

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03 / Understand the method

Formula and method

Daily demand × Lead time + Safety stock

Estimate the stock position at which replenishment should be triggered under a fixed lead-time demand model.

How to use this calculator

  1. Collect the figures for the same entity, currency and reporting period.
  2. Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
  3. Choose Calculate, inspect the breakdown and compare the result with your assumptions.
  4. Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.

Inputs at a glance

  • Average daily demand in units: A nonnegative numeric input in the units specified by the label.
  • Lead time in days: A nonnegative numeric input in the units specified by the label.
  • Safety stock in units: A nonnegative numeric input in the units specified by the label.

Worked example

Follow one calculation.

Average daily demand in units
50
Lead time in days
6
Safety stock in units
100
Calculated result
400 units

Load this example in the interactive form to inspect the intermediate amounts.

Assumptions and interpretation

Demand and lead time must use consistent day definitions. Inventory position usually includes on-order inventory and deducts relevant backorders.

The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.

Questions about this tool

What does the reorder point calculation measure?

Estimate the stock position at which replenishment should be triggered under a fixed lead-time demand model.

Which assumptions can change the result?

Demand and lead time must use consistent day definitions. Inventory position usually includes on-order inventory and deducts relevant backorders.

Why can displayed totals differ slightly from my spreadsheet?

Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.

Reference and further learning

Inventory reporting reference: IAS 2. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.

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Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.

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