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Reorder Cash Requirement Calculator
Estimate when to reorder inventory, the cash needed for your next purchase and the effect of stockouts on future payouts.
How the calculation works
Reorder stock trigger = daily demand × (supplier lead time + safety days). A conservative order day is floor((current stock − trigger) ÷ daily demand), or day 0 if already below the trigger. The purchase is paid before trading on that day. Arrival is order day + lead time, no earlier than day 1.
Worked example
With 280 units, demand of 10 units a day, a 14-day lead time and a 7-day safety buffer, the trigger is 210 units and the conservative order day is day 7. Buying 500 units at $20 costs $10,000; arrival is at the start of day 21. Cash is also affected by the seller payout delay.
Assumptions and limits
This is one replenishment, not an ongoing purchasing schedule. Current stock is already paid for. Purchases after the planning period are not charged inside the cash plan.
Arrivals happen before that day’s sales. Stockouts reduce fulfilled sales; missed demand is lost rather than backordered, so future payout receipts also fall.
Daily demand and selling price stay constant. No minimum order quantity, supplier deposit schedule, storage fees or freight is added automatically. Include applicable costs in purchase cost or cash expenses.
Your numbers are processed in this browser. Changing currency does not convert them. These are estimates from your assumptions; check actual costs and settlement statements.
Frequently asked questions
How is reorder cash different from a reorder point?
A reorder point estimates when to buy using demand, lead time and a safety buffer. Reorder cash also considers the purchase payment, daily expenses and delayed sales payouts, so you can see whether enough cash is available when you order.
Do I include the cost of inventory I already own?
Current stock is assumed to be paid for. The next purchase is charged once at the next unit cost times purchase quantity. If you still owe a supplier for current stock, this model does not automatically include that liability.
What happens when inventory runs out?
The plan sells only units available in stock. Unfulfilled demand is lost, not backordered, and generates no later payout. The plan includes one replenishment only; a long planning period can therefore contain another stockout after that purchase sells through.
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