Free Tool by VNDLY
EOQ Calculator
Find the optimal order quantity that minimises your total inventory cost. Enter annual demand, order cost and holding cost to get your EOQ instantly.
Your economic order quantity
141
units per order — minimises total inventory cost
Orders per year
7.1
annual demand ÷ EOQ
Days between orders
52
365 ÷ orders per year
Total annual inventory cost
$707
Ordering $354 + Holding $354
Total units sold or used per year.
Cost to place one purchase order (admin, shipping, minimum fees).
Storage, insurance, obsolescence — typically 20–30% of unit cost.
The formula
EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit)
Orders per year = annual demand ÷ EOQ
Total annual cost = ordering cost + holding cost
100% free · no signup · calculated in your browser.
EOQ assumes steady demand. Reality doesn't.
EOQ assumes demand is perfectly steady — which it never is. VNDLY uses your real sales history to calculate optimal order quantities per SKU, factoring in seasonality, supplier lead times and minimum order quantities automatically.
How to use this calculator
1. Enter annual demand
Total units you'll sell or use in a year.
2. Enter order cost
Fixed cost to place one purchase order.
3. Enter holding cost per unit
Cost to keep one unit in stock for a year.
4. Read your EOQ
The calculator shows optimal units per order and total cost.
EOQ explained
EOQ finds the order size that balances two opposing costs: ordering too often (high order costs) and ordering too much (high holding costs). The sweet spot minimises total inventory cost.
What is EOQ?
The order quantity that minimises the combined cost of ordering and holding inventory.
Order too little
More frequent orders, higher ordering cost.
Order too much
Fewer orders, but higher storage and holding cost.
EOQ finds the sweet spot
The lowest point on the total-cost curve.
Real demand is never perfectly steady
EOQ assumes demand is perfectly steady — which it never is. VNDLY uses your real sales history to calculate optimal order quantities per SKU, factoring in seasonality, supplier lead times and minimum order quantities automatically. Starting at $49/mo.
Related free tools
Frequently asked questions
What is Economic Order Quantity (EOQ)?
EOQ is the ideal number of units to order each time to minimise the total cost of ordering and holding inventory.
What is the EOQ formula?
EOQ = √(2DS/H), where D = annual demand, S = cost per order, H = annual holding cost per unit.
What is 'holding cost'?
The cost of keeping one unit in stock for a year. Includes storage, insurance, obsolescence risk and the opportunity cost of cash tied up in inventory. A common estimate is 20–30% of the unit's purchase cost.
What is 'order cost'?
The fixed cost of placing one purchase order — admin time, supplier minimums, delivery fees. Not the cost of the goods themselves.
What are the limitations of EOQ?
EOQ assumes constant, steady demand and fixed costs. It doesn't account for seasonality, supplier minimums, bulk discounts or varying lead times. It's a starting point — real inventory management needs software that adapts to actual demand.