How to use this calculator
- Enter annual unit demand, fixed cost per order, annual holding cost per unit.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Assumes steady known demand, instant replenishment, no quantity discount and no stockouts. Round and assess practical order sizes separately.
Worked example
With annual unit demand = 10000, fixed cost per order = 50, annual holding cost per unit = 2, economic order quantity is approximately 707.10678.
What the result means
EOQ is a cost-balancing model, not a minimum order recommendation independent of supplier constraints.
Common questions
How should I interpret economic order quantity?
EOQ is a cost-balancing model, not a minimum order recommendation independent of supplier constraints.
What should I check before using this result?
Assumes steady known demand, instant replenishment, no quantity discount and no stockouts. Round and assess practical order sizes separately.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.