01
Economic order quantity formula
EOQ equals the square root of two times annual demand times cost per order, divided by annual holding cost per unit.
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Economic Order Quantity Calculator
Calculate the classic economic order quantity from annual demand, ordering cost, and annual holding cost per unit.
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01 USE IT NOW02 NO ACCOUNT03 FIELD NOTES BELOW
WORKING INPUTS
Balance ordering and holding cost.
LIVE RESULT
Economic order quantity
693 unitsClassic EOQ planning model; safety stock and reorder timing remain separate.EXACT EOQ692.82 units
ESTIMATED ORDERS / YEAR17.32
ANNUAL ORDERING COST$692.82
ANNUAL HOLDING COST$692.82
36
THE COST-BALANCING ORDER
Find the point where ordering and carrying costs meet.
EOQ turns three declared planning inputs into one repeatable order-size benchmark while keeping demand timing, safety stock, and supplier constraints separate.
WORKING VIEW
693 UNITSANNUAL COST BALANCE
METHODsquare root of (2 × annual demand × order cost ÷ annual holding cost)
WORKING NOTE12,000 annual demand · $40 per order · $2 annual holding cost
INPUTS → CLEAR OUTPUT
THE FIELD NOTES
Quick answer above. Better decisions below.
Use the result now, then read the practical notes for assumptions, examples, limitations, and the choices behind it.
ANNUAL COST BALANCE693 UNITS
12,000 annual demand · $40 per order · $2 annual holding cost
02
Use one annual scope
Annual demand and annual holding cost must use the same item, location, and twelve-month scope. Cost per order should include costs that recur with each replenishment.
03
Read order frequency and annual cost together
The result also shows estimated orders per year plus annual ordering and cycle-stock holding cost at the exact EOQ.
04
What EOQ does not decide
EOQ assumes steady demand, stable costs, immediate replenishment, and no stockouts or quantity discounts.
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Economic order quantity formula
EOQ equals the square root of two times annual demand times cost per order, divided by annual holding cost per unit.
The formula calculates at full precision and rounds only the operational order quantity to the nearest whole unit.
Use one annual scope
Annual demand and annual holding cost must use the same item, location, and twelve-month scope. Cost per order should include costs that recur with each replenishment.
A percentage carrying rate must first be converted into an annual dollar holding cost per unit.
Read order frequency and annual cost together
The result also shows estimated orders per year plus annual ordering and cycle-stock holding cost at the exact EOQ.
Those two modeled costs converge at the classic optimum under the model assumptions.
What EOQ does not decide
EOQ assumes steady demand, stable costs, immediate replenishment, and no stockouts or quantity discounts.
It does not set reorder timing, safety stock, supplier minimums, storage capacity, or a purchasing commitment.
Questions, answered.
What is the economic order quantity formula?
EOQ is the square root of two times annual demand times cost per order, divided by annual holding cost per unit.
Should EOQ be rounded up?
The exact optimum can be fractional. This calculator shows the exact value and rounds the operational display to the nearest whole unit.
Does EOQ include safety stock?
No. EOQ estimates order size under a simplified cost model; safety stock and reorder timing are separate inventory decisions.
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