Economic Order Quantity Calculator

Balance order frequency against inventory carrying cost using the classic EOQ model.

Economic order quantity
600 units/order
Orders per year 20 orders/year
Annual order cost USD 900.00
Annual holding cost USD 900.00
Inputs
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
units / year
Expected annual unit demand.
currency / order
Administrative and delivery cost for one replenishment order.
currency / unit / year
Annual cost to hold one unit in inventory.
Results & Graph
Economic order quantity
600 units/order
Orders per year
20 orders/year
Annual order cost
USD 900.00
Annual holding cost
USD 900.00

Economic order quantity

Graph 1 • Annual Demand Sensitivity Recalculates the domain equation across 50% to 150% of the primary input while holding other parameters constant.
0 units/order 396.8 units/order 793.6 units/order 50%: 424.264 units/order 424.3 50% 75%: 519.615 units/order 519.6 75% 100%: 600 units/order 600 100% 125%: 670.82 units/order 670.8 125% 150%: 734.847 units/order 734.8 150%
Graph 2 • Primary & Supporting Metric Comparison Compares the primary output alongside supporting domain benchmarks.
Economic order quantity 600 units/order Orders per year 20 orders/year Annual order cost USD 900.00 Annual holding cost USD 900.00
Graph 3 • Exact Output Table & Units Displays each calculated output in its exact domain unit.
Economic order quantity600 units/orderOrders per year20 orders/yearAnnual order costUSD 900.00Annual holding costUSD 900.00
Summary: The classic EOQ model suggests orders of about 600 units under the supplied annual demand and cost assumptions.
Summary: The classic EOQ model suggests orders of about 600 units under the supplied annual demand and cost assumptions.
⚠️ EOQ assumes stable demand, fixed order cost, and average cycle stock; it excludes quantity discounts and stockout risk.

Formula & Mathematical Methodology: Economic Order Quantity Calculator

EOQ = 2 × annual demand × order cost ÷ annual holding cost per unit.
EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit).
  • annualDemand: User-entered annual demand (units / year).
  • orderCost: User-entered order cost (currency / order).
  • holdingCost: User-entered holding cost (currency / unit / year).

Rounding: Calculations retain full precision; displayed values are rounded for readability.

Worked Example: Example: Order Quantity

Balance order frequency against inventory carrying cost using the classic EOQ model.

  1. Enter values for the period and unit shown.
  2. Use current, measured inputs wherever available.
  3. Review the result, chart, assumptions, and limitations together.
Result: EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit).

Frequently Asked Questions

How accurate is this result?

It is only as accurate as the values and assumptions entered. Check the included formula and limitations against your situation.

Does the currency selector convert exchange rates?

No. It changes the displayed denomination only; it does not convert between currencies.

Business & Marketing • Operations & Inventory Guide

How to Use the Economic Order Quantity Calculator: Practical Guide & Visual Analysis

Estimate economic order quantity from annual demand, per-order cost, and annual holding cost per unit. Enter your own assumptions and review the formulas, example, and limitations before using the result. Whether you are researching economic order quantity calculator calculator, economic order quantity calculator, economic order quantity, this interactive tool helps you estimate economic order quantity from annual demand, per-order cost, and annual holding cost per unit.

Interpreting the 3 Custom Visual Graphs & Key Outputs

As you adjust Display Currency, Annual Demand, Order Cost, Holding Cost, the calculator immediately computes Calculated estimate, Supporting metrics, Calculator-specific visual comparison and updates all three domain-specific SVG charts in real time. Instead of relying on a single static figure, you can inspect the primary domain diagram, component breakdown, and multi-point trajectory curve to see how changing your inputs shifts the final result. Use the Compare (up to 3 scenarios) button to evaluate side-by-side variations before making a decision.

Real-World Benchmark & Planning Tips (General planning estimate; rates and rules are user-entered.)

In our benchmark scenario (Example: Order Quantity), EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit). Keep in mind that inputs are treated as estimates for the selected period. For related calculations in Business & Marketing, explore Percentage Calculator, Business Break-Even Calculator.