📈 EOQ Calculator

Find the Economic Order Quantity that minimizes total annual inventory costs.

Demand & Order Cost

Annual Demand (units)

Order Cost per Order ($)

Cost to place one order (shipping, processing)

Holding Cost

Annual Holding Cost ($ / unit / year)

Storage, insurance, opportunity cost

Unit Cost ($)

Holding Cost Rate (%)

Typically 20–30% of unit cost

The EOQ Model

The Economic Order Quantity formula is: EOQ = √(2 × D × S ÷ H), where D = annual demand, S = order cost per order, and H = annual holding cost per unit. At EOQ, ordering cost equals holding cost — this is the minimum total cost point.

Model assumptions: constant demand, instant replenishment, no quantity discounts, single product, known fixed costs. In practice, EOQ is a useful starting point — adjust based on supplier minimums, storage constraints, and seasonal demand.