The suggestions listed below are “rules of thumb” for a good bike fit.
Straddle the bike. There should be 1-3″ of clearance between the frame and your crotch.
The angle of the saddle should be pretty close to horizontal. Start with it level to ground and then adjust accordingly.
The most efficient seat height is when your legs are completely extended at the bottoms of the pedal stroke with your heels on the pedals, which will give you a slight bend in your knee when pedaling.
Saddle Fore/Aft Position
Slide saddle forward or back so that with the crank arms parallel to the ground, a plumb line hanging from the bony protrusion just below your forward kneecap, bisects the axle of the pedal.
Height should be adjusted for comfort first. Keep in mind that bars adjusted too high will result in pain from too much weight on the saddle.
Place your elbow on your saddle nose and extend your arm and fingers towards the handlebars. The tips of your fingers should touch your handlebars.
Handlebars should be about the same width as your shoulders.