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Calculators / Business / Economic order quantity
Economic order quantity calculator
Estimate the order quantity that balances ordering and holding cost.
On this page
Economic order quantity774.6units
Orders / year15.49orders
Calculator controls
How to calculate
Estimate the order quantity that balances ordering and holding cost.
EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit)
Worked example
Annual demand (units): 12000; Cost per order: 50; Annual holding cost per unit: 2.
Economic order quantity: 774.6 units; Orders / year: 15.49 orders.
Assumptions and limits
The basic EOQ model assumes stable demand, constant costs, immediate replenishment, no shortages, and no quantity discounts.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Estimate the order quantity that balances ordering and holding cost. The result follows the displayed formula and keeps every adjustable assumption visible.
When this tool is useful
Use this tool to plan quantities or compare scenarios before making a purchase or technical decision.
Understanding your inputs
| Input | What to enter |
|---|---|
| Annual demand (units) | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Cost per order | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Annual holding cost per unit | Enter a number of at least 0.000001 and no more than 1000000000000. |
Frequently asked questions
What can change the economic order quantity result?
The basic EOQ model assumes stable demand, constant costs, immediate replenishment, no shortages, and no quantity discounts.
Should I round the inputs first?
No. Enter the best measurements available and round only the practical final quantity, such as full packs, boards, sheets, or components.