Inventory calculator
EOQ Calculator
Find the economic order quantity: the order size that balances what each order costs against what it costs to hold stock. Your entered values stay out of analytics.
Formula and assumptions
EOQ = √(2 × annual demand × cost per order ÷ holding cost per unit per year).
- Demand is steady through the year and you never run out of stock.
- The cost of placing an order and the yearly cost of holding one unit stay the same whatever you order.
- You type the holding cost per unit; no rate is assumed.
- The EOQ is shown to 3 decimal places with a whole-unit suggestion rounded up; orders per year and average cycle stock are shown to 2 decimal places.
Formula version 1.0, last reviewed 1 October 2026.
Frequently asked questions
What does EOQ assume?
Steady demand through the year, no stock-outs, and fixed order and holding costs. If your demand is seasonal or prices change with order size, treat the result as a starting point.
How do I estimate holding cost per unit?
Add the yearly storage, insurance, spoilage and financing cost of keeping stock, and divide by the units held. The Landed Cost Calculator can give you the unit cost to work from. This tool never assumes a rate for you.
Should I order exactly the EOQ?
Round to a practical pack or case size. Costs change little near the EOQ.