The Economic Order Quantity Calculator works out your economic order quantity, along with 1 related figure in an instant. Enter annual demand (units), cost per order and holding cost per unit/year and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
Enter the annual demand (units).
Enter the cost per order.
Enter the holding cost per unit/year.
Read off your economic order quantity, together with orders per year — the calculator updates automatically, with no button to press.
Formula
The Economic Order Quantity Calculator uses the formula:
Economic order quantity = √(2 × Annual demand (units) × Cost per order ÷ Holding cost per unit ÷ year)
Worked example
For example, with annual demand (units) of 10,000, cost per order of ₹50 and holding cost per unit/year of ₹2, the economic order quantity is 707.
Inputs used
Annual demand (units)
10,000
Cost per order
₹50
Holding cost per unit/year
₹2
Results
Economic order quantity
707
Orders per year
14.1
Results are estimates for educational use, not professional advice.
Key terms explained
Economic order quantity
The order size that minimises combined ordering and holding costs (EOQ).
Frequently asked questions
EOQ is the order size that minimises combined ordering and holding costs: √(2DS ÷ H). With demand 10,000, order cost 50 and holding cost 2, EOQ is about 707 units.
Ordering more often raises ordering costs but lowers holding costs, and vice versa. EOQ balances the two for the lowest total cost.
It is the cost to keep one unit in stock for a year, including storage, insurance and capital tied up.
It assumes steady demand, constant costs and instant replenishment. Real situations vary, so treat EOQ as a strong starting point.
The Economic Order Quantity Calculator uses the formula: Economic order quantity = √(2 × Annual demand (units) × Cost per order ÷ Holding cost per unit ÷ year). For example, with annual demand (units) of 10,000, cost per order of ₹50 and holding cost per unit/year of ₹2, the economic order quantity is 707.
Enter the annual demand (units). Enter the cost per order. Enter the holding cost per unit/year. Read off your economic order quantity, together with orders per year — the calculator updates automatically, with no button to press.
Reference table of economic order quantity for Economic Order Quantity across a range of annual demand (units) values — exact, engine-computed figures you can read off at a glance.