[EOQ Calculator]

Find the Order Quantity That Minimizes Inventory Costs

Enter your annual demand, ordering cost, unit cost, and holding rate to calculate the economic order quantity. See how ordering and holding costs balance at the optimal point.

Demand & Ordering
units
$/order
$/unit
%
Optimal Order

Economic Order Quantity

490units per order

Orders / Year

24.5

Cycle Time

14.9days

Total Cost

$2,449/ year

Avg Inventory

245units (EOQ / 2)

Avg Inventory Value

$6,125

Cost Balance
Annual Ordering Cost$1,225
Annual Holding Cost$1,225
Inputs

D = Demand

12,000units / year

S = Setup Cost

$50.00/ order

H = Holding Cost

$5.00/ unit

How EOQ Works

EOQ = √(2DS / H)

D = Demand
Annual units required
S = Setup Cost
Cost per order placed
H = Holding Cost
Unit Cost × Holding Rate
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