Economic Order Quantity (EOQ) Calculator

Economic Order Quantity (EOQ) Calculator

EOQ · cost breakdown · reorder point · quantity discounts

Core Inputs

Holding Cost — H

H can be a flat currency amount per unit per year, or a percentage of the item's unit cost — pick whichever your data uses.

Reorder Point (optional)

Reorder point = lead-time demand + safety stock. Daily demand is derived from annual demand ÷ 365.

Price Tiers

Each tier: minimum order quantity to qualify, and the unit price at that quantity. The tool finds the true lowest total cost (purchase + ordering + holding).

Result

Enter annual demand, ordering cost and holding cost to get the economic order quantity, the ordering-vs-holding cost breakdown, a nearby-quantity comparison, the reorder point and orders per year — or switch to quantity-discount mode to test price breaks

The classic EOQ model assumes steady demand, a fixed ordering cost, a constant holding cost and instant replenishment — real demand varies, so treat EOQ as a strong starting point rather than an exact optimum. At the EOQ the ordering and holding costs are equal, which is why the total-cost curve is flat near the minimum: order quantities somewhat above or below the EOQ cost almost the same, giving you practical flexibility. In quantity-discount mode the cheapest tier is not always the lowest unit price, because a large minimum order raises holding cost — the tool compares the genuine total. The carrying cost rate here is exactly the H input; the Inventory Carrying Cost Estimator can help you build it up from its components.

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