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.
Instant calculations · Editable fee assumptions · Export-ready results
Inputs
Values update results instantly. Adjust fee assumptions to match your seller dashboard.
Demand
Total units sold per year
Costs
Admin, freight, receiving — fixed cost per order
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.
Distribution
- Ordering cost$711.5150.0%
- Holding cost$711.5150.0%
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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Economic Order Quantity Calculator
Generated 8/4/2026, 2:50:29 PM · Currency USD
Inputs
- Annual demand (units): 3600
- Ordering cost per order: 75
- Cost per unit: 15
- Annual holding cost %: 25
- Working days per year: 250
Results
- 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
Interpretation
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.
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
- 1Convert percent holding to dollars per unit per year.
- 2Apply classic EOQ square root formula to balance ordering and holding.
- 3Derive orders per year and days between orders from EOQ and working days.
- 4Calculate ordering and holding at EOQ to show total cost.
- 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.
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.
FAQ
Common questions
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