Safety Stock Calculator

    Enter average and maximum daily demand, average and worst-case lead times, service level target, and carrying cost. See recommended buffer units, its dollar value, annual holding cost, and how many days of demand it covers at average and peak. Compare buffers at 90%, 95%, and 99% service levels.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Demand

    Average units sold per day

    Peak daily demand observed

    Supply

    Average supplier lead time

    Worst-case lead time observed

    Target

    Service level % — 95% means 5% chance of stockout

    Reference

    USD

    Purchase or manufacturing cost

    %

    Annual inventory carrying cost %

    Results

    Live estimates based on your inputs and editable fee assumptions.

    Recommended safety stock

    195

    Buffer units to hold.

    Safety stock value

    $1,560.00

    Dollar value tied in buffer.

    Annual holding cost

    $390.00

    Cost to carry safety stock yearly.

    Days buffer at avg demand

    13

    Safety stock divided by avg daily.

    Days buffer at max demand

    7.80

    Safety stock divided by max daily.

    Service level chosen

    95

    Target in-stock rate.

    What this means

    195 units safety from (25×12 − 15×7) = 300−105. $1560 tied, $390/yr holding. 13.0 days at avg, 7.8 days at max. 95% service (z=1.65).

    Safety stock at different service levels

    Interactive breakdown of fees, costs, and remaining profit.

    Distribution

    • 90%
      $151.27
      17.9%
    • 95%
      $195.00
      23.1%
    • 97%
      $222.18
      26.3%
    • 99%
      $275.36
      32.6%

    Total $843.82 · 4 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Avg demand during lead time
    105
    Max demand during max lead
    300
    Recommended safety stock
    195
    Safety stock value
    $1,560.00
    Annual holding cost
    $390.00
    Days at avg demand
    13
    Days at max demand
    7.80
    At 90% service level
    151.27
    At 99% service level
    275.36

    Assumptions used

    • • Max 25×12=300 minus avg 15×7=105 = 195 safety
    • • $8.00 × 195 = $1560.00
    • • Holding 25% × $1560.00 = $390.00/yr

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Calculate average demand during lead time as avgDaily × avgLead.
    2. 2Calculate max demand during max lead as maxDaily × maxLead.
    3. 3Basic safety is difference between max scenario and average scenario.
    4. 4Value days of buffer at both average and peak rates.
    5. 5Show how safety scales with 90/95/97/99 service levels using ratio to 95% base.

    Formulas

    • avgLeadDemand = avgDaily × avgLead
    • maxLeadDemand = maxDaily × maxLead
    • safetyBasic = maxLeadDemand − avgLeadDemand
    • safetyValue = safety × unitCost
    • holdingAnnual = safetyValue × holding%/100
    • bufferDays = safety / dailyRate

    Important assumptions

    • Basic safety stock = (maxDaily × maxLead) − (avgDaily × avgLead).
    • Z-scores: 90%=1.28, 95%=1.65, 97%=1.88, 99%=2.33.
    • Safety value = safety units × unitCost.
    • Annual holding cost = safety value × holdingCost%.
    • Buffer days = safety units / daily demand rate.

    Worked example

    Average 15/day, max 25/day, 7 vs 12 day lead

    Avg 15/day × 7 days =105 avg lead demand. Max 25/day ×12=300 max demand. Basic safety 195 units. At $8 = $1,560 value, $390 holding yearly at 25%. At 15/day =13 days buffer, at 25/day=7.8 days. 90% =161 units, 95%=195, 99%=234.

    Basic formula (max×max − avg×avg) =300−105=195 buffer. That covers 13 days at average 15/day or 7.8 days at max 25/day. At $8 each, $1,560 tied. Holding 25% yearly = $390 cost to avoid stockouts. If you accept 90% service level, safety drops to ~161 units saving $272 tied. If you need 99%, bump to 234 units, $1,872 tied, $468 holding.

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    Common questions

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