Place your bike on a level surface: This is important for getting accurate measurements. You may need a bike trainer or a friend to help hold the bike steady while you're on it.
Position your pedal: Make sure the pedal of one side is at the lowest point, in line with the seat tube of the bike. It should form a vertical line.
Sit on your bike and place your heel on the pedal: Without rocking your hips and while keeping your leg and foot straight, place your heel on the pedal that is at the lowest position.
Adjust the saddle height: Adjust the height of your saddle until your leg is completely straight when your heel is on the pedal. This should provide a good starting point for your saddle height.
Double-check with regular foot position: Now, place your foot on the pedal as you normally would while cycling (usually with the ball of your foot over the pedal). In this position, there should be a slight bend in your knee when the pedal is at its lowest point.
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