About the EOQ Calculator
Ordering stock in small lots means paying the cost of an order many times. Ordering in large lots means paying to store goods that sit on the shelf. The economic order quantity, EOQ, is the order size where the two costs balance and the total is lowest. Enter the yearly demand, the cost of placing one order and the cost of holding one unit for a year. Type the yearly demand, the cost per order and the yearly holding cost per unit and the economic order quantity appears at once, with a few related figures underneath, and you can copy the result with one tap. The sums run in your browser, so nothing you enter is uploaded.
Updated October 2026
How to use the EOQ Calculator
- 1Enter the yearly demand, the cost per order and the yearly holding cost per unit.
- 2Pick the units or options from the menus if the economic order quantity tool offers them.
- 3Read the economic order quantity in the large result box.
- 4Look at the extra rows for related figures.
- 5Press Copy result to keep the answer.
When you need the economic order quantity
Shop owners, warehouse managers and operations students use the EOQ to decide how much to reorder. It is a starting point for inventory plans, which then add safety stock for supplier delays and demand swings.
The model assumes steady demand, a fixed cost per order and no discounts for larger orders. In real life, quantity discounts and minimum order sizes may move the best choice, but the EOQ still shows the trade-off.
How the economic order quantity is worked out
EOQ = √(2 × demand × order cost ÷ holding cost). At the EOQ, the yearly ordering cost equals the yearly holding cost. With a demand of 1,000 units a year, an order cost of 50 and a holding cost of 2 per unit, the EOQ is 223.6 units. That means 4.47 orders a year, one every 81.6 days. Ordering costs 223.61 and holding costs 223.61, a total of 447.21.
Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.
- Orders per year and cycle
- Cost split
- Round to pack sizes
Mistakes to avoid with economic order quantity
Holding cost includes more than rent: capital tied up, insurance, damage and obsolescence, often 15 to 30 percent of the item value a year. Use realistic figures. Round the result to a practical pack size or pallet quantity.
On phone and computer
On a phone, type into the boxes one after another and read the economic order quantity underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the economic order quantity move. The eoq calculator works the same on both. Inventory costs connect to other numbers. Use COGS Calculator for the cost of goods, Break-Even Calculator for sales needed, Unit Price Calculator to compare suppliers, and Profit Margin Calculator for margins.
Features
- Holding costs are more than rent
- Add safety stock
- Discounts shift the best size
- Clear messages when the economic order quantity inputs make no sense
- Copy the result with one tap
- Private: nothing is uploaded
Frequently asked questions
How do I calculate economic order quantity?
EOQ = √(2 × demand × order cost ÷ holding cost). At the EOQ, the yearly ordering cost equals the yearly holding cost. With a demand of 1,000 units a year, an order cost of 50 and a holding cost of 2 per unit, the EOQ is 223.6 units. That means 4.47 orders a year, one every 81.6 days. Ordering costs 223.61 and holding costs 223.61, a total of 447.21.
What is the formula for economic order quantity?
EOQ = √(2 × demand × order cost ÷ holding cost). At the EOQ, the yearly ordering cost equals the yearly holding cost. The eoq calculator applies it exactly and rounds only the displayed answer to six significant figures.
What does EOQ minimise?
The sum of the yearly ordering cost and the yearly holding cost.
Is a larger order always cheaper per unit?
Not once holding costs are counted. The EOQ shows the balance, unless a discount changes it.
How often should I order?
The calculator gives the days between orders. Add a reorder point for lead time.
Is this eoq calculator free and private?
Yes. It is free, needs no account and runs in your browser, so the numbers you type are not uploaded or stored.