Free online calculator
Economic Order Quantity Calculator
Estimate an order size that balances ordering and holding costs. Includes a worked example, formula and practical FAQs.
Formula: EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit)
How to use the Economic Order Quantity Calculator
Estimate an order size that balances ordering and holding costs. Enter annual unit demand, fixed cost per order and annual holding cost per unit.
Formula
EOQ = square root(2 × annual demand × cost per order ÷ annual holding cost per unit).
Worked example
Annual demand of 10,000 units, $50 per order and $2 holding cost per unit gives square root(500,000) = 707.1068 units. The tool displays 708 units and about 14.14 orders per year.
Interpretation and limitations
The displayed quantity rounds up, while orders per year uses the unrounded EOQ. The model assumes steady demand and costs, no quantity discounts and no stockouts.
Economic Order Quantity questions
Is holding cost a percentage input?
No. Enter annual currency cost per unit. Convert a carrying percentage to a per-unit amount before entering it.
Should I order exactly 708 units?
Treat it as a model result. Compare feasible pack sizes, supplier minimums, storage limits and discounts before selecting a quantity.
Continue your calculation
For the next step, use the Reorder Point Calculator or the Inventory Carrying Cost Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.