Supply Chain
Economic Order Quantity (EOQ) Calculator
The order size that minimizes total inventory cost by balancing the cost of ordering against the cost of holding stock — the classic economic order quantity.
Inputs
- Annual demand — Total units you sell or use in a year.
- Cost per order — Fixed cost to place and receive one order.
- Holding cost per unit / year — Storage, insurance, and capital cost to hold one unit for a year.
How to use this calculator
- Enter annual demand, the cost to place one order, and the cost to hold a unit for a year.
- The EOQ is the order size that minimizes total ordering-plus-holding cost.
- Use it to challenge 'how much should we order'. It is a starting point, not a mandate.
What each term means
- EOQ
- Economic order quantity: the order size with the lowest total inventory cost.
- Order cost
- The fixed cost to place and receive a single order.
- Holding cost
- The cost to store, insure, and finance a unit for a year.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.