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Economic Order Quantity Calculator

Balance the cost of placing frequent orders against the cost of carrying more inventory.

How the estimate works

EOQ is the square root of two times annual demand times ordering cost, divided by annual holding cost per unit.

Important limitation

The classic model assumes stable demand, immediate replenishment, no stockouts, and constant costs. Results are estimates only and are not financial, lending, legal, tax, or investment advice.

Assumptions and review

Formula review: July 29, 2026. This tool uses only the editable values shown above and does not pull live rates, prices, balances, or account data.

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Frequently asked questions

How does the economic order quantity calculator work?

EOQ is the square root of two times annual demand times ordering cost, divided by annual holding cost per unit.

Is this economic order quantity calculator exact?

No. It is a planning estimate based on the values you enter. Actual rates, fees, timing, taxes, and provider rules can change the result.

Can I change the assumptions?

Yes. Every displayed input is editable so you can compare scenarios instead of relying on a hidden default.

Economic Order Quantity Calculator