EOQ Calculator (Economic Order Quantity

Economic Order Quantity (EOQ) is an inventory management formula that calculates the optimal order size to minimize total combined ordering and holding costs.

To use the EOQ Calculator (Economic Order Quantity), enter your Annual Demand (D), Fixed Order Cost (S), Annual Holding / Carrying Cost (H). The calculator instantly computes Economic Order Quantity (EOQ), Number of Orders Per Year and more. Results update in real time as you change any input — no submit button needed.

How to Use This Calculator

Enter your Annual Demand (D) (e.g. 10000 in units/yr), Fixed Order Cost (S) (e.g. 50 in /order), and Annual Holding / Carrying Cost (H) (e.g. 2.50 in /unit/yr). Results update instantly as you type — no submit button or page reload required. Adjust any value to compare scenarios side by side.

The Formula

EOQ = √[(2 × Demand D × Order Cost S) ÷ Holding Cost H]

Orders per Year = Demand D ÷ EOQ

Total Annual Inventory Cost = (D / EOQ × S) + (EOQ / 2 × H)

Worked Example

10,000 units annual demand, 50 setup cost per order, 2.50 annual holding cost per unit.

• EOQ = √[ ÷ 2.50] = √[400,000] = 632 units per order.

• Orders per Year: 10,000 ÷ 632 = 15.82 orders/year.

• Total Annual Cost: 1,581.

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Understanding Your Result

Evaluate your result against the specific financial decision driving this calculation. Small input differences can create large output swings — run two or three scenarios (conservative, base, optimistic) to understand the range of outcomes. For decisions involving more than a month's income, validate your result against a second source or consult a certified financial planner (CFP) or CPA depending on the tax implications.