Economic Order Quantity Calculator
The order size that balances ordering costs against holding costs, with the order frequency.
Results
Economic order quantity
774.6
Orders per year
15.49
Total cost
2633.63
Days
23.6
d
What this tool does
Ordering often means paying the setup cost many times; ordering rarely means paying to store a big pile. The EOQ is the point where those two costs cross, and the curve around it is flat — being 20 % off the ideal quantity costs almost nothing.
Formula
EOQ = √(2 × D × S ÷ H)
Variables
| Symbol | Meaning | Unit |
|---|---|---|
d | Annual demand | — |
s | Cost per order | — |
h | Holding cost per unit per year | — |
Q | Economic order quantity | — |
N | Orders per year | — |
C | Total cost | — |
T | Days | d |
Worked example
- Annual demand12,000
- Cost per order85
- Holding cost per unit per year3.4
- Economic order quantity774.6
- Orders per year15.49
- Total cost2633.63
- Days23.6 d
Limitations
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.