---
title: Reorder Point Calculation: Simple Spreadsheet Formula
siteUrl: https://logzly.com/inventoryinsight
author: inventoryinsight (Inventory Insight)
date: 2026-07-23T17:21:13.718085
tags: [inventorymanagement, reorderpoint, business]
url: https://logzly.com/inventoryinsight/reorder-point-calculation-simple-spreadsheet-formula
---


You need a **reorder point calculation** now—not tomorrow. If you’re tired of stockouts that halt sales or excess inventory that ties up cash, this guide shows you the exact formula and a ready‑to‑use spreadsheet so you can order at the right moment, every time.  

## Why Guessing Inventory Costs You Money  

Guesswork turns inventory into a guessing game. One week you’re out of your bestseller, the next you’re stuck with pallets of unsold goods—both scenarios drain **cash flow** and damage supplier relationships. A data‑driven **reorder point calculation** removes that uncertainty and puts you in control.  

## Step‑by‑Step Reorder Point Calculation  

The math is only three numbers long:

**Reorder Point = (Average Daily Demand × Lead‑Time in Days) + Safety Stock**

1. **Average Daily Demand** – Total units sold in a typical week ÷ 7.  
2. **Lead‑Time in Days** – Days between placing an order and receiving it on the shelf.  
3. **Safety Stock** – A buffer for demand spikes; many small businesses use ≈ 20 % of weekly demand.

**Example**:  
- Average Daily Demand = 15 units  
- Lead‑Time = 5 days  
- Safety Stock = 21 units (20 % of 105 weekly units)  

Reorder Point = (15 × 5) + 21 = **96** units. Order when inventory drops to 96.  

### Retail Store Example  

- Daily demand: 30 shirts  
- Lead‑Time: 7 days  
- Safety Stock: 50 shirts  

Reorder Point = (30 × 7) + 50 = **260** shirts.  

## Template Download & How to Use It  

I’ve built a free Excel template that automates the steps above:

* **Colored cells** highlight when you’re below the threshold.  
* **Copy‑paste rows** for each SKU and replace the three inputs—no formulas to write.  
* **Monthly update** takes under five minutes.

[Download the Reorder Point Template]  

## Quick FAQ  

**Q: Can I use this for multiple products?**  
A: Yes. Duplicate the three‑row block for each SKU, change the demand and lead‑time values, and the sheet recalculates automatically.  

**Q: How often should I refresh the numbers?**  
A: Review **average daily demand** and **lead‑time** at least once a month, or whenever a supplier changes their shipping schedule.  

**Q: What if my demand is highly seasonal?**  
A: Calculate separate **average daily demand** for each season and switch the values in the template as the season changes.  

Implement the **reorder point formula** today, watch stockouts disappear, and free up cash that was previously stuck in excess inventory. The spreadsheet does the heavy lifting—your business reaps the results.