Finance

Instant, private, and free

EOQ Calculator.

Calculate economic order quantity from demand, ordering cost, and holding cost.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Annual demand

Ordering cost per order

Annual holding cost per unit

Economic order quantity

0.00

Orders per year

0.00

Average cycle stock

0.00

FAQs

How does the eoq calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

Use Cases

Inventory Cost Optimization

Determine the order size that minimizes total inventory costs for a product, balancing ordering and holding expenses.

Example: A retailer with annual demand of 10,000 units, ordering cost of $50 per order, and holding cost of $2 per unit per year.

Supply Chain Planning

Use EOQ to set order quantities in procurement and supply chain strategies, ensuring efficient stock levels.

Example: A manufacturer planning raw material orders to reduce storage and ordering costs.

Frequently Asked Questions

What is the Economic Order Quantity (EOQ) formula?: EOQ = sqrt((2 * D * S) / H), where D is annual demand, S is ordering cost per order, and H is holding cost per unit per year. This formula balances ordering and holding costs to find the most cost-effective order size.
How does this calculator help in inventory management?: It quickly computes the optimal order quantity based on your inputs, helping you minimize total inventory costs. By using the EOQ, you can reduce the combined costs of ordering and holding stock, improving efficiency and profitability.
What are the assumptions of the EOQ model?: The basic EOQ model assumes constant demand, fixed ordering costs, and holding costs that are linear with inventory. It also assumes no stockouts and immediate replenishment. These assumptions simplify real-world scenarios, so the result is an estimate.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same time period (e.g., annual demand with annual holding cost).
Use accurate estimates for ordering and holding costs to get a reliable EOQ.
Re-calculate EOQ periodically as demand or costs change.
Consider real-world constraints like storage capacity or supplier minimums when applying the result.

Common Mistakes to Avoid

Using inconsistent time units, such as monthly demand with annual holding cost.
Ignoring quantity discounts or other cost variations that the basic EOQ model does not account for.
Assuming the EOQ is a one-time calculation; it should be updated as conditions change.

Last updated: August 13, 2026

Use Cases

Inventory Cost Optimization

Determine the order size that minimizes total inventory costs for a product, balancing ordering and holding expenses.

Example: A retailer with annual demand of 10,000 units, ordering cost of $50 per order, and holding cost of $2 per unit per year.

Supply Chain Planning

Use EOQ to set order quantities in procurement and supply chain strategies, ensuring efficient stock levels.

Example: A manufacturer planning raw material orders to reduce storage and ordering costs.

Frequently Asked Questions

What is the Economic Order Quantity (EOQ) formula?

EOQ = sqrt((2 * D * S) / H), where D is annual demand, S is ordering cost per order, and H is holding cost per unit per year. This formula balances ordering and holding costs to find the most cost-effective order size.

How does this calculator help in inventory management?

It quickly computes the optimal order quantity based on your inputs, helping you minimize total inventory costs. By using the EOQ, you can reduce the combined costs of ordering and holding stock, improving efficiency and profitability.

What are the assumptions of the EOQ model?

The basic EOQ model assumes constant demand, fixed ordering costs, and holding costs that are linear with inventory. It also assumes no stockouts and immediate replenishment. These assumptions simplify real-world scenarios, so the result is an estimate.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same time period (e.g., annual demand with annual holding cost).
Use accurate estimates for ordering and holding costs to get a reliable EOQ.
Re-calculate EOQ periodically as demand or costs change.
Consider real-world constraints like storage capacity or supplier minimums when applying the result.

Common Mistakes to Avoid

Using inconsistent time units, such as monthly demand with annual holding cost.
Ignoring quantity discounts or other cost variations that the basic EOQ model does not account for.
Assuming the EOQ is a one-time calculation; it should be updated as conditions change.

Finance

Instant, private, and free

EOQ Calculator.

Calculate economic order quantity from demand, ordering cost, and holding cost.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Annual demand

Ordering cost per order

Annual holding cost per unit

Economic order quantity

0.00

Orders per year

0.00

Average cycle stock

0.00

FAQs

How does the eoq calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

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Use Cases

Inventory Cost Optimization

Determine the order size that minimizes total inventory costs for a product, balancing ordering and holding expenses.

Example: A retailer with annual demand of 10,000 units, ordering cost of $50 per order, and holding cost of $2 per unit per year.

Supply Chain Planning

Use EOQ to set order quantities in procurement and supply chain strategies, ensuring efficient stock levels.

Example: A manufacturer planning raw material orders to reduce storage and ordering costs.

Frequently Asked Questions

What is the Economic Order Quantity (EOQ) formula?: EOQ = sqrt((2 * D * S) / H), where D is annual demand, S is ordering cost per order, and H is holding cost per unit per year. This formula balances ordering and holding costs to find the most cost-effective order size.
How does this calculator help in inventory management?: It quickly computes the optimal order quantity based on your inputs, helping you minimize total inventory costs. By using the EOQ, you can reduce the combined costs of ordering and holding stock, improving efficiency and profitability.
What are the assumptions of the EOQ model?: The basic EOQ model assumes constant demand, fixed ordering costs, and holding costs that are linear with inventory. It also assumes no stockouts and immediate replenishment. These assumptions simplify real-world scenarios, so the result is an estimate.

Tips & Common Mistakes

Tips

Ensure all inputs are in the same time period (e.g., annual demand with annual holding cost).
Use accurate estimates for ordering and holding costs to get a reliable EOQ.
Re-calculate EOQ periodically as demand or costs change.
Consider real-world constraints like storage capacity or supplier minimums when applying the result.

Common Mistakes to Avoid

Using inconsistent time units, such as monthly demand with annual holding cost.
Ignoring quantity discounts or other cost variations that the basic EOQ model does not account for.
Assuming the EOQ is a one-time calculation; it should be updated as conditions change.

Last updated: August 13, 2026