Economic Order Quantity Calculator

    Enter annual demand, fixed cost per order, unit cost, and holding cost percent. See economic order quantity, orders per year, days between orders, average inventory level and value, and annual ordering versus holding costs. Order smaller than EOQ and you pay more in orders, larger and you pay more in storage.

    Best for

    Make the next pricing or planning decision with context

    Decide how much stock or cash to commit by testing demand, reorder, and carrying-cost assumptions. It covers Find your optimal order quantity — the sweet spot that minimizes total inventory costs including ordering and holding.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

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

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    Demand

    Total units sold per year

    Costs

    USD

    Admin, freight, receiving — fixed cost per order

    USD

    Purchase or manufacturing cost per unit

    %

    Annual holding cost as % of unit value (storage, insurance, capital)

    Reference

    Days you operate for ordering frequency

    Results

    Live estimates based on your inputs and editable fee assumptions.

    EOQ (optimal order quantity)

    379.47

    Cost-optimal units per order.

    Orders per year

    9.49

    Annual demand divided by EOQ.

    Days between orders

    26.35

    Working days divided by orders per year.

    Average inventory level

    189.74

    EOQ divided by 2.

    Average inventory value

    $2,846.05

    Average units times unit cost.

    Annual ordering cost at EOQ

    $711.51

    Orders per year times cost per order.

    Annual holding cost at EOQ

    $711.51

    Avg inventory times holding cost.

    Total annual inventory cost

    $1,423.02

    Ordering plus holding at EOQ.

    What this means

    EOQ 379 units minimizes cost. Order 9.5/yr every 26.4 working days. Avg inventory 190 units ($2846). Total yearly $1423 = $712 ordering + $712 holding.

    Costs at EOQ — ordering vs holding

    Interactive breakdown of fees, costs, and remaining profit.

    50%50%

    Distribution

    • Ordering cost
      $711.51
      50.0%
    • Holding cost
      $711.51
      50.0%

    Total $1,423.02 · 2 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Holding per unit per year
    $3.75
    EOQ units
    379.47
    Orders per year
    9.49
    Days between orders
    26.35
    Avg inventory level
    189.74
    Avg inventory value
    $2,846.05
    Annual ordering at EOQ
    $711.51
    Annual holding at EOQ
    $711.51
    Total annual at EOQ
    $1,423.02

    Assumptions used

    • • Holding $3.75 = $15.00×25%
    • • EOQ sqrt((2×3600×75)/3.75) = 379.5
    • • 3600/379.5 = 9.49 orders/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. 1Convert percent holding to dollars per unit per year.
    2. 2Apply classic EOQ square root formula to balance ordering and holding.
    3. 3Derive orders per year and days between orders from EOQ and working days.
    4. 4Calculate ordering and holding at EOQ to show total cost.
    5. 5Average inventory level is half of EOQ assuming linear depletion.

    Formulas

    • holdingPerUnit = unitCost × holding%/100
    • EOQ = sqrt((2 × annualDemand × orderCost) / holdingPerUnit)
    • ordersPerYear = annualDemand / EOQ
    • daysBetween = workingDays / ordersPerYear
    • orderingAnnual = ordersPerYear × orderCost
    • holdingAnnual = (EOQ/2) × holdingPerUnit
    • total = orderingAnnual + holdingAnnual

    Important assumptions

    • Holding cost per unit per year = unitCost × holdingCost%/100.
    • EOQ = sqrt(2 × annualDemand × orderingCost / holdingCostPerUnit).
    • Orders per year = annualDemand / EOQ.
    • Days between = workingDaysPerYear / ordersPerYear.
    • Annual ordering = ordersPerYear × orderingCost.
    • Annual holding = (EOQ/2) × holdingCostPerUnit.
    • Demand and costs assumed constant over year — add safety stock separately for variability.

    Sources & review

    Know what this estimate is built on

    This calculator is intentionally platform-agnostic, so it does not attach a platform fee URL.

    Calculator model reviewed: August 9, 2026

    Official references

    No single official fee page is attached here. The model keeps these inputs editable so you can use the terms that apply to your situation.

    Use the current terms

    This model uses editable planning assumptions. Confirm tax, payment, financing, or operating terms with the relevant provider, official authority, or adviser for your situation.

    Defaults are editable estimates. Match them to your current account, provider statement, official authority, lender, or adviser before making a pricing or investment decision.

    Calculator model reviewed: August 9, 2026. This date covers the page and calculator guidance, not a guarantee that every live platform rate or term was re-audited on that date.

    Worked example

    3,600 units per year, $75 order cost

    3600 units yearly, $75 per order, $15 unit, 25% holding = $3.75/unit/year, 250 working days. EOQ sqrt(2×3600×75/3.75)=sqrt(144000)=379.5 →380 units. 9.5 orders/yr every 26.3 days. Annual ordering $712.50 = 9.5×$75. Holding (380/2)×$3.75=$712.50. Total $1,425. Avg inventory 190 units = $2,850 value.

    Holding $3.75 from $15×25%. EOQ sqrt((2×3600×75)/3.75)=379.5 rounds to 380. Orders 3600/380=9.47 yearly, every 250/9.47=26.4 working days. Ordering yearly $710, holding $712, total $1,425. Avg inventory 190 units worth $2,850 sitting. If supplier MOQ 500, recalc total at 500: ordering 7.2×$75=$540, holding 250×$3.75=$937.50 total $1,477 vs $1,425 at EOQ, only $52 more yearly for MOQ compliance.

    FAQ

    Common questions

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