Economic Order Quantity Calculator
Balance replenishment order costs against inventory holding costs in the classical EOQ model.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Economic Order Quantity Calculator
Enter a currency amount for annual holding cost per unit, not a percentage. Ordering cost applies to each replenishment event. The modeled balance occurs where annual ordering and holding costs are equal.
The calculation
Worked example
10,000 units/year, $50 per order and $2 annual holding cost per unit give a continuous EOQ of about 707.1068 units.
Assumptions and limits
Assumes steady demand, immediate replenishment, no shortages and no quantity discounts. Whole-unit ordering is an approximation; supplier minimums, storage capacity and lead-time uncertainty require additional constraints.
Common questions
Is EOQ the reorder point?
No. EOQ addresses order size; reorder point addresses the stock level at which to order.
Where is purchase price included?
A constant unit purchase cost does not change the classical EOQ optimum. Quantity discounts would change the model.