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Economic Order Quantity Calculator

Estimate an ideal order size balancing ordering and holding costs.

Use a consistent reporting periodCheck the calculation below

Your business figures

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METRIC SNAPSHOT

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter annual unit demand, cost per order, annual holding cost per unit.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

EOQ = √(2 × annual demand × order cost/annual holding cost per unit).

A WORKED EXAMPLE

Using annual unit demand = 10000 units/year, cost per order = 50 money/order, annual holding cost per unit = 2 money/unit/year, the result is 707.106781 units. Change these example inputs to match your task; use the method above to check each step.

What to keep in mind

Assumes steady known demand, instantaneous replenishment and no quantity discounts. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Common questions

Which inputs does this calculation need?

Estimate an ideal order size balancing ordering and holding costs. Enter annual unit demand in units/year, cost per order in money/order, annual holding cost per unit in money/unit/year. The filled example is editable and is not a saved personal record.

How should I interpret the result?

Assumes steady known demand, instantaneous replenishment and no quantity discounts. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Methodology maintained by ClarityKit. How these tools are built and checked.