CALCULATOR · FREE

Reorder point and stockout cost calculator

This reorder point calculator tells you the stock level at which to place your next purchase order, so new units arrive before the last ones sell. For marketplace sellers, lead time is longer than the supplier's production time: you also wait for transit and for FBA, WFS or your 3PL to receive and check in the stock. Safety stock covers the days that sell faster than average, and the stockout line shows what each day out of stock costs you.

01 Demand Use the last 30 to 90 days, leaving out days you were out of stock.
units

Example Use the last 30 to 90 days, leaving out days you were out of stock.

units

Example Or switch to the simple method and enter your highest daily sales.

02 Lead time Production, transit and receiving add up to the lead time the reorder point covers.
days

Example From the supplier's confirmed lead time.

days

Example Port to port plus drayage, or courier time.

days

Example At FBA, WFS or your 3PL. Use your own inbound history; times vary by site and season.

Assumption One-sided Z values from the standard normal table. A 95% service level is 1.65; 1.96 is the two-sided value and overstates safety stock.

03 Stock and margin What you hold now, and what a stockout day costs.
units

Example Count only sellable units.

$

Example Price minus landed cost minus fees and ad spend per unit.

%

Sourced FMI and GMA global out-of-stock study (Oct 14, 2002): 31% buy at another store, 26% switch brand, 9% buy nothing.

days

Example Amazon's low-inventory-level fee applies only when both 30-day and 90-day historical days of supply are below 28 days, with exemptions.

What the reorder point calculator works out

Lead time in days, safety stock, lead-time demand, your reorder point, days of supply on hand and inbound, days until you must reorder, the daily cost of a stockout in lost contribution margin and an Amazon flag when days of supply at FBA fall under 28.

The inputs

InputDefaultLabelNote
Average units sold per day20ExampleUse the last 30 to 90 days, leaving out days you were out of stock
Standard deviation of daily units6ExampleOr switch to the simple method and enter your highest daily sales
Supplier production days30ExampleFrom the supplier's confirmed lead time
Transit days25ExamplePort to port plus drayage, or courier time
Receiving and check-in days at FBA, WFS or your 3PL7ExampleUse your own inbound history; times vary by site and season
Service level95% (Z = 1.65)AssumptionOptions: 90% (1.28), 95% (1.65), 97.5% (1.96), 99% (2.33), from the standard normal table
Units on hand plus inbound1,600ExampleCount only sellable units
Contribution margin per unit$9ExamplePrice minus landed cost minus fees and ad spend per unit
Sales lost when out of stock66%SourcedFMI and GMA global out-of-stock study (Oct 14, 2002): 31% buy at another store, 26% switch brand, 9% buy nothing

A note on Z values: a 95% service level means a 95% chance of not running out during lead time, which is the one-sided value, 1.65. Some calculators online use 1.96 for 95%; that is the two-sided value and overstates safety stock.

The formula and method

  • Lead time (L) = production days + transit days + receiving days
  • Safety stock = Z × standard deviation of daily units × √L
  • Simple method instead: safety stock = maximum daily units × maximum lead time − average daily units × average lead time
  • Reorder point = average daily units × L + safety stock
  • Days of supply = (on hand + inbound) ÷ average daily units
  • Days until you must reorder = (on hand + inbound − reorder point) ÷ average daily units
  • Stockout cost per day = average daily units × lost share × contribution margin per unit
  • Amazon low-inventory flag = days of supply at FBA under 28

The Amazon flag is a warning, not a fee calculation. Amazon's low-inventory-level fee applies only when both your 30-day and 90-day historical days of supply are below 28 days, and Amazon applies exemptions, including one for new FBA products in their first 180 days of sales history, according to Seller Labs (vendor, updated Aug 3, 2026).

Worked example

Illustrative · sample figures, using the defaults above.

StepCalculationResult
Lead time30 + 25 + 762 days
Safety stock1.65 × 6 × √62 (7.87)about 78 units
Lead-time demand20 × 621,240 units
Reorder point1,240 + 78about 1,318 units
Days of supply1,600 ÷ 2080 days
Days until you must reorder(1,600 − 1,318) ÷ 20about 14 days
Stockout cost per day20 × 66% × $9about $118.80 in contribution margin

So the purchase order for this SKU should go out within about two weeks. Every day it is late and the shelf empties costs about $119 in margin, before any effect on rank.

Limitations

  • It assumes demand is steady around the average. Seasonal products, launches and promotions need their own forecast.
  • Lead-time variation is not modeled separately in the statistical method. If your supplier or freight is unreliable, add buffer days or use the simple method.
  • The stockout cost counts lost margin only. On Amazon and Walmart, a stockout can also cost search rank and the featured offer, which this does not price.
  • Receiving times at fulfillment centers change by site and season. Use your own recent inbound history.
  • Since Mar 31, 2026, Amazon resellers must label every unit with an FNSKU for new inbound shipments, and units that arrive without required barcodes are not eligible for reimbursement (PPC Land, Mar 24, 2026). Build labeling time into receiving days.

Under every result: this estimate uses the figures you enter and published rates. It is not an audit, an offer or a promise of savings, sales or profit.

Questions

Questions owners ask

Talk to an ops lead (free)
What is the reorder point formula?

Reorder point = average daily units × lead time in days + safety stock. For marketplace sellers, lead time includes supplier production, transit and the days FBA, WFS or your 3PL take to receive the stock.

How much safety stock should I keep?

Enough to cover demand above average during lead time at the service level you choose. At 95%, safety stock is 1.65 × the standard deviation of daily sales × the square root of lead time in days. Higher service levels cost more stock.

Should I keep more than 28 days of supply at Amazon?

For most steady sellers, yes. Amazon's low-inventory-level fee applies when both 30-day and 90-day historical days of supply fall below 28 days, unless an exemption applies. Running too lean costs fees as well as sales.

See all free calculators.

Sources5 sources
  1. 01fmi.orgOct 14, 2002; checked Oct 20, 2026Primary
  2. 02sellingpartners.aboutamazon.comOct 15, 2025; checked Oct 20, 2026Primary
  3. 03sellerlabs.comlow-inventory-level fee scope and new-product exemption, updated Aug 3, 2026; vendor; checked Oct 20, 2026Vendor
  4. 04ppc.landMar 24, 2026; checked Oct 20, 2026Primary
  5. 05sellercentral.amazon.comAmazon staff, "Low-inventory-level fee further explained": fee only when both 30-day and 90-day historical days of supply are below 28 days; about 2023; checked Oct 20, 2026Primary

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