Work Tools

Economic Order Quantity Calculator

Estimate EOQ from annual demand, ordering cost per order, and annual holding cost per unit.

Updated April 14, 2026
Free online tool
Planning and research use

Why this page exists

Order-planning math gets easier when annual demand and cost assumptions are turned into one EOQ estimate instead of being balanced by intuition alone. This calculator helps visitors estimate economic order quantity from annual demand, ordering cost, and annual holding cost per unit.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Economic order quantity calculator

Estimate economic order quantity from annual demand, ordering cost per order, and annual holding cost per unit.

Result

529 units

Estimated EOQ based on the standard square-root relationship between annual demand, ordering cost, and annual holding cost per unit.

Economic order quantity529 units

Annual demand used12,000 units

Ordering cost per order$42.00

Annual holding cost per unit$3.60

Estimated orders per year at EOQ22.68

12,000 units of annual demand, $42.00 of ordering cost, and $3.60 of annual holding cost per unit produce an EOQ near 529 units.
At that order size, the model points to about 22.68 orders per year.
Use the result as a planning baseline only, because real inventory policy often needs service levels, supplier limits, and demand variability layered on top.

This is a simplified inventory-planning model. Real ordering decisions can also depend on minimum order sizes, demand swings, service-level targets, and supplier constraints.

Planning note

Last updated April 14, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter annual demand, ordering cost per order, and annual holding cost per unit.

The calculator applies the standard EOQ square-root formula.

It shows the resulting EOQ and an estimated number of orders per year at that order size.

Understanding your result

This is a simplified inventory-planning model. Real order policies can also depend on supplier minimums, service levels, and demand variability.

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Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Estimate an order size that balances two cost types

EOQ can help turn abstract inventory tradeoffs into one practical planning number.

Compare the effect of different ordering costs

Changing the ordering-cost input can show how much process cost affects the ideal order quantity estimate.

Use it with reorder and stock tools

EOQ often fits naturally beside reorder point, safety stock, and inventory-carrying-cost tools.

FAQ

Common questions

How is EOQ calculated here?

The calculator uses the standard EOQ formula: the square root of 2 times annual demand times ordering cost, divided by annual holding cost per unit.

Why is EOQ useful?

It gives a simple order-size estimate that balances ordering cost against holding cost under the assumptions entered.

Why can real order quantities differ from EOQ?

Supplier minimums, service targets, storage limits, and uneven demand can all lead teams to order something other than the pure EOQ result.

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Keep comparing

Use these related tools to compare nearby scenarios, check a second estimate, or keep narrowing down the right decision.

Work ToolsUpdated April 12, 2026