What this calculator does
Economic Order Quantity (EOQ) works out order size that minimises combined ordering and holding costs for inventory. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaEOQ = √(2·D·S / H), where D = annual demand, S = cost per order, H = annual holding cost per unit
The inputs explained
| Field | What to enter |
|---|---|
| Annual demand (units) | A number. Starts at 12000. |
| Cost per order ($) | A number, measured in your currency. Starts at 75. |
| Annual holding cost per unit ($) | A number, measured in your currency. Starts at 4. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with annual demand (units)
Every other input is held at the calculator’s starting values while annual demand (units) varies. Select any row to load that scenario into the calculator.
How the answer changes with annual demand (units)