Economic Order Quantity Calculator

Calculate the economic order quantity (EOQ) that minimizes total ordering and holding cost, including orders per year and cycle time.

867.7K uses Updated · 2026-05-14 Runs locally · zero upload
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The Economic Order Quantity Calculator finds the order size that minimizes the sum of ordering costs and holding costs over a year. EOQ is a foundational inventory-management formula used by procurement, operations, and supply-chain teams.

How to Use Economic Order Quantity Calculator

  1. Enter annual demand (D) in units.
  2. Enter cost per order (S) and annual holding cost per unit (H).
  3. Specify the number of working days per year.
  4. Review EOQ, orders per year, average inventory, cycle time, and minimum total cost.

Formula & Theory - Economic Order Quantity Calculator

EOQ = sqrt((2 × D × S) / H)
orders_per_year = D / EOQ
avg_inventory = EOQ / 2
cycle_days = days_per_year / orders_per_year
total_cost = (orders × S) + (avg_inventory × H)

Use Cases for Economic Order Quantity Calculator

  • Plan replenishment cycles for raw materials and finished goods.
  • Minimize total inventory cost for steady-demand SKUs.
  • Support negotiations with suppliers on order frequency.
  • Compare EOQ with current ordering patterns to find savings.

Frequently asked questions about Economic Order Quantity Calculator

Does EOQ assume constant demand?

Yes. The standard EOQ model assumes constant demand, fixed costs, and no stockouts. Adjustments are needed for variable demand.

What if my real ordering policy differs?

EOQ is a benchmark. Compare it with your current order quantity to see how far off you are and whether savings are possible.

How do I get holding cost (H)?

It typically includes capital cost, storage, insurance, and obsolescence, expressed per unit per year.

Is my data stored?

No. All calculations run locally in your browser.