EOQ Calculator - Economic Order Quantity

Your details

The total number of units you sell or consume in a year. Use a 12-month rolling average if demand fluctuates.
units/yr
All fixed costs incurred each time you place one order: shipping, handling, processing, inspection. Does not include the unit purchase price.
USD
The cost to store one unit for one year: warehousing, insurance, obsolescence, capital tied up. Often estimated as 20-30 % of the unit purchase price.
USD/unit/yr
Include the purchase price per unit if you want the total annual inventory cost (purchase cost + ordering cost + holding cost) in the output. Leave at 0 to omit.
USD
Number of days between placing an order and receiving it. Used to calculate the Reorder Point (ROP). Leave at 0 to skip.
days
Economic Order Quantity
1,461units

Optimal batch size that minimizes total annual inventory cost

Orders per year16.4orders/yr
Order cycle time22.2days
Average inventory730units
Annual ordering cost1,314.53USD
Annual holding cost1,314.53USD
Total annual inventory cost2,629.07USD
Annual ordering cost1,314.53
Annual holding cost1,314.53

Your optimal order size is 1461 units.

  • Ordering 1461 units per batch requires roughly 16.4 orders per year, one every 22 days.
  • At EOQ, annual ordering cost and annual holding cost are perfectly equal - this is the mathematical minimum of total cost.
  • Each order covers about 0.7 months of demand at the current annual rate.

Next stepIn practice, round EOQ to the nearest practical batch size (pallet quantity, minimum order, etc.) and recalculate total cost to confirm rounding does not add significantly to costs. Add a safety stock buffer on top of the Reorder Point to protect against demand surges or late deliveries.

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