Safety Stock Calculator

Quick answer

The safety stock calculator works out how much extra inventory to keep to avoid stock-outs, with the basic max–average method or the statistical method based on a service level and the variability of demand and lead time, plus the reorder point.

days
days
Safety stock
400 units
Reorder point
720 units
Days of cover from safety stock
10 days

Safety stock buffers against uncertainty in demand and supplier lead times. A higher service level (the chance of not running out) needs disproportionately more stock: going from 95% to 99% raises Z from 1.65 to 2.33.

How to use the Safety Stock Calculator

  1. Method
  2. Maximum daily usage
  3. Maximum lead time
  4. Average daily usage
  5. Average lead time
  6. Service level
  7. Standard deviation of daily demand
  8. Standard deviation of lead time

Results update as you type, and every field accepts the units shown in its menu.

How it works

Choose a method, then enter usage and lead-time figures (and their standard deviations for the statistical method).

Inputs explained

Field What to enter
Method Choose one: Basic (max and average), Statistical (service level)
Maximum daily usage A number
Maximum lead time In days
Average daily usage A number
Average lead time In days
Service level Choose one: 90%, 95%, 97.5%, 99% …
Standard deviation of daily demand A number
Standard deviation of lead time In days

What each result means

  • Reorder point = [Average daily usage]×[Average lead time] + [Safety stock]
  • Days of cover from safety stock = [Safety stock]÷[Average daily usage]

Example values

How the main result changes when Maximum daily usage changes and everything else stays at the example values above:

Maximum daily usage Safety stock (units)
30 40
45 220
60 400
75 580
90 760
120 1,120

Formula

Basic: safety stock = max daily usage × max lead time − average daily usage × average lead time Statistical: SS = Z × √(LT × σ_d² + d² × σ_LT²) Reorder point = average daily usage × average lead time + safety stock

Worked example

Inputs: Method: Basic (max and average); Maximum daily usage: 60; Maximum lead time: 12 days; Average daily usage: 40; Average lead time: 8 days.
Results: Safety stock = 400 units; Reorder point = 720 units; Days of cover from safety stock = 10 days.

Frequently asked questions

What is safety stock?

Extra inventory kept to cover unexpected demand or supplier delays.

How do I choose a service level?

Balance the cost of holding stock against the cost of running out; 95% is common.

What is the reorder point?

The stock level at which you place a new order.

Cite this calculator

Speedy Calculator. (2026). Safety Stock Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/safety-stock/