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Economic Order Quantity (EOQ) Calculator

What do these figures come to once the work is shown?

EOQ, orders per year, days between orders and total ordering plus holding cost from demand, order cost and holding rate.

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  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Economic order quantity
600.00
Order size that minimizes ordering plus holding cost
Orders per year
20.00
Days between orders
18.3 days
Drawn to one scale
Yearly ordering cost$1,500
Yearly holding cost$1,500
Total ordering plus holding cost$3,000
All results
MeasureResult
Economic order quantity600.00
Orders per year20.00
Days between orders18.3 days
Yearly ordering cost$1,500
Yearly holding cost$1,500
Total ordering plus holding cost$3,000
How this was worked out
Work shownrecomputed as you type
Holding cost per unit H = unit cost x holding rate
EOQ = sqrt(2 x D x S / H)
Orders per year = D / EOQ
At EOQ, ordering cost = holding cost

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Holding cost per unit H = unit cost x holding rate
  • EOQ = sqrt(2 x D x S / H)
  • Orders per year = D / EOQ
  • At EOQ, ordering cost = holding cost

How it works

Every order has a fixed cost: purchasing time, receiving, freight minimums. Every unit on the shelf has a carrying cost: capital, storage, insurance, shrink. Big orders cut the first and raise the second. The economic order quantity is the size where the two are equal and their sum is lowest.

The model assumes steady demand, a fixed order cost, no quantity discounts and instant replenishment. Holding rates of 20 to 30 percent of unit cost are common. The total cost curve is flat near the optimum, so rounding EOQ to a case or pallet size costs little.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What goes in the order cost?

Costs that rise with the number of orders: processing, receiving, inspection and fixed freight per shipment.

What about quantity discounts?

Compare total cost, including purchase price, at EOQ and at each discount break. Pick the lowest.

Does EOQ set when to order?

No. EOQ sets how much. The reorder point sets when.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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