Free tool
Economic order quantity (EOQ) calculator
Find the order size that balances ordering costs against holding costs, and see how many orders a year that means.
units/yr
Staff time, delivery and admin to place and receive one order.
% / yr
Often 15–30% — see the holding cost calculator.
RESULT
- Holding cost per unit per year
- 60.00
- Orders per year
- 12.0
- Yearly ordering + holding cost
- 12,000
- Economic order quantity
- 200 units
Round the EOQ to your supplier's case pack or minimum order — total cost barely changes near the EOQ.
How it works
- EOQ = √(2 × annual demand × cost per order ÷ annual holding cost per unit).
- Annual holding cost per unit = unit cost × holding cost rate.
- At the EOQ, yearly ordering cost and yearly holding cost are equal — the lowest point of their total.
StashBill does this automatically for every item and invoice. See all features or try the other free tools.
Frequently asked
Steady demand, a fixed purchase price, and that each order arrives in full. Adjust for supplier minimums, case packs, volume discounts, seasonality and shelf life.
Everything it costs to place and receive one order: staff time to order, chase, receive and check it, delivery charges, and payment or admin costs.
No. Safety stock belongs in the reorder point, which decides when to order. EOQ decides how much.
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