EOQ Calculator (Economic Order Quantity)
Balance ordering cost against holding cost to find a cost-based order size. Free, runs in your browser, nothing is uploaded.
Calculator
| EOQ√(2 × 12,000 × 75 ÷ 5) = 600.0 | 600.0 | √(2 × 12,000 × 75 ÷ 5) = 600.0 |
|---|---|---|
| Orders per year12,000 ÷ 600.0 = 20.0 | 20.0 | 12,000 ÷ 600.0 = 20.0 |
| Days between orders365 ÷ 20.0 = 18.3 | 18.3 | 365 ÷ 20.0 = 18.3 |
| Annual ordering cost(12,000 ÷ 600.0) × 75 = 1,500.0 | 1,500.0 | (12,000 ÷ 600.0) × 75 = 1,500.0 |
| Annual holding cost(600.0 ÷ 2) × 5 = 1,500.0 | 1,500.0 | (600.0 ÷ 2) × 5 = 1,500.0 |
| Total annual cost1,500.0 + 1,500.0 = 3,000.0 | 3,000.0 | 1,500.0 + 1,500.0 = 3,000.0 |
Annual cost by order quantity
How it works
Ordering more at a time means fewer orders (lower ordering cost) but more stock on the shelf (higher holding cost). EOQ = √(2DS/H) is the quantity where the two are equal and the total is lowest.
The total cost curve is flat near the EOQ, so rounding to a convenient pack size usually costs little.
FAQ
What does EOQ assume?
Steady demand, a fixed cost per order and a constant holding cost. Real constraints such as minimum order quantities, pack sizes and quantity discounts can move the best order size.
What should the holding cost percentage include?
Cost of capital plus storage, insurance, shrinkage and obsolescence. 20–30% of unit cost per year is a common starting range.
Is my data uploaded?
No. Calculations and CSV parsing run in your browser, and the numbers and files you enter are never sent to a server, unless you choose to share a link, which carries the single-item inputs in its address. The page has no ads, sign-up or third-party trackers; the site host keeps standard anonymous visit counts.
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