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Economic Order Quantity (EOQ) Calculator
Order too often and ordering costs pile up. Order too rarely and holding costs pile up instead. EOQ is the one order size that minimizes both at once.
Reading This Tool
How To Use This Calculator
Enter annual demand, what it costs to place one order, and what it costs to hold one unit for a year.
At the EOQ, total ordering cost and total holding cost are exactly equal, that's not a coincidence, it's the calculus. The reorder point then tells you when to actually place that order, based on how long the supplier takes to deliver.
Your Inputs
Optimal Order Size
-Economic Order Quantity
0 units
Orders Per Year
0.0
Total Annual Cost (Order + Hold)
$0
Reorder Point
0 units
Average Inventory On Hand
0 units
Total Cost By Order Size, EOQ Marked
Holding cost per unit typically bundles warehousing, insurance, obsolescence risk and the opportunity cost of capital tied up in inventory, often estimated as a percentage of unit cost rather than a flat dollar figure.