EOQ Calculator Find Your Optimal Order Quantity
Calculate Economic Order Quantity, orders per year, and inventory costs in seconds. Free, private, and built for Indian retailers, distributors, and manufacturers.
Units sold or consumed in one year — not sales value
Fixed cost to place and receive one order (not product price)
Cost of keeping one unit in stock for one year
Result summary
Enter valuesRecommended order quantity
— units per order
Enter annual demand, ordering cost, and holding cost to calculate your ideal order quantity.
Orders per year
N/A
Days between orders
N/A
Avg cycle inventory
N/A
Annual ordering cost
N/A
Annual holding cost
N/A
Total relevant cost
N/A
EOQ is a planning estimate based on constant demand, fixed ordering and holding costs, and no quantity discounts. Review lead times, seasonality, and cash flow before ordering.
What is an EOQ Calculator?
An Economic Order Quantity (EOQ) calculator finds the order size that minimizes the combined cost of placing orders and holding stock. Instead of guessing how many units to buy each time, you enter annual demand, ordering cost, and holding cost — and get a clear replenishment quantity with order frequency and annual cost breakdown.
How to use this calculator
Enter demand and costs
Add annual demand (units), cost per purchase order, and annual holding cost per unit.
Optional constraints
Open advanced options for operating days, supplier MOQ, pack size, and rounding preference.
Review the plan
See EOQ, practical quantity, orders per year, days between orders, and annual inventory costs.
How to estimate your inputs
Good EOQ results depend on realistic inputs. Use these components as a checklist when building ordering and holding cost.
Annual demand (D)
Units expected to be sold or consumed in one year — not sales value in rupees.
Monthly demand × 12 is a quick start. For seasonal items, use a considered annual forecast and treat EOQ as a guide, not a rigid rule.
Ordering cost (S) — per purchase order
Fixed cost incurred each time you place an order, excluding the purchase price of the goods.
- ·Procurement staff time and PO administration
- ·Supplier communication and follow-ups
- ·Receiving, inspection, and put-away
- ·Fixed freight or handling charges
- ·Customs, documentation, and payment processing
- ·Production setup cost (for make-to-stock batches)
If you know total annual purchasing-process cost and how many orders you place, S ≈ total annual ordering cost ÷ number of orders.
Holding cost (H) — per unit per year
Cost of keeping one unit in inventory for one full year. Do not enter total warehouse cost unless you divide by average units held.
- ·Warehouse space allocation and utilities
- ·Insurance on inventory
- ·Financing / cost of capital
- ·Shrinkage, damage, and pilferage
- ·Obsolescence and expiry risk
- ·Handling and inventory service overhead
A common estimate is H = unit purchase cost × annual carrying rate (for example 15–30%). Or H = total annual carrying costs ÷ average units held.
Formula reference
Transparent math for EOQ, order frequency, cycle stock, and annual inventory costs.
Economic Order Quantity
- EOQ = √(2 × D × S ÷ H)
Orders per year
- Orders per Year = D ÷ EOQ
Days between orders
- Days Between Orders = Operating Days ÷ Orders per Year
Average cycle inventory
- Average Cycle Inventory = EOQ ÷ 2
Annual ordering cost
- Annual Ordering Cost = (D ÷ EOQ) × S
Annual holding cost
- Annual Holding Cost = (EOQ ÷ 2) × H
Total relevant cost
- Total Relevant Cost = Annual Ordering Cost + Annual Holding Cost
Practical quantity
- Practical Quantity = ceil(max(EOQ, MOQ) ÷ Pack Size) × Pack Size
Worked example — retail SKU
A distributor expects to sell 12,000 units of a product per year. Each purchase order costs ₹750 to place and process. Holding one unit for a year costs ₹30.
Annual demand (D)
12,000 units
Ordering cost (S)
₹750
Holding cost (H)
₹30 / unit / year
EOQ
≈ 775 units
Orders per year
≈ 15.5
Days between orders
≈ 23.6 days
Avg cycle inventory
≈ 387 units
Total relevant cost
≈ ₹23,237 / year
At EOQ, annual ordering cost and annual holding cost are approximately equal — that is the economic balance point.
With MOQ and pack size
Same product, but the supplier has an MOQ of 500 and ships in cartons of 50. Using round-up pack alignment:
Exact EOQ
≈ 775 units
MOQ
500
Pack size
50
Practical quantity
800 units
Adjustment
Rounded up to carton of 50
Cost impact
Slightly higher holding cost vs exact EOQ
Always compare cost at the practical quantity with cost at exact EOQ when supplier constraints force a larger lot.
Who uses this tool
Retail inventory managers
Set repeatable order quantities for stable products and variants.
Wholesalers & distributors
Balance larger replenishment lots against storage and cash-flow pressure.
Manufacturers
Plan raw materials, packaging, consumables, and component buys.
Procurement teams
Estimate order frequency and adjust for MOQ or carton constraints.
Finance & accountants
Quantify annual ordering and carrying costs for planning discussions.
Students & learners
See the EOQ formula with substituted values and step-by-step results.
Why T7ERP EOQ Calculator?
Built for real replenishment decisions
Whether you run a shop, warehouse, or factory, turn demand and cost inputs into an order quantity you can act on.
Beyond a single number
Get EOQ plus orders per year, days between orders, and full annual cost split.
MOQ and pack aware
Convert textbook EOQ into a quantity you can actually order from the supplier.
Cost transparency
See ordering vs holding cost and how practical constraints change total cost.
India-ready examples
INR defaults, Indian number formatting, and inventory scenarios for local businesses.
Assumptions made clear
Know when EOQ is reliable — and when demand seasonality or discounts break the model.
Private and free
Runs in your browser. No login and no data upload by default.
Assumptions and limitations
The classic EOQ model is powerful but simplified. Treat results as planning estimates.
- Demand is relatively constant and known over the year.
- Ordering cost per order is fixed and independent of quantity.
- Holding cost per unit per year is constant.
- Replenishment is complete and instantaneous (or lead time is stable and ignored in the lot size).
- No intentional stockouts or backorders.
- No quantity discounts that change unit purchase price by lot size.
- Single item; multi-SKU warehouse constraints are not optimized together.
- Safety stock and service-level policies are outside this basic model.
Review supplier constraints, lead times, seasonality, shelf life, storage capacity, and cash flow before placing an order. EOQ does not replace professional inventory judgment.
EOQ versus related inventory concepts
EOQ answers “how many should I order?” Other tools answer different questions.
EOQ
Optimal lot size balancing ordering cost against holding cost.
Reorder point
When to place the next order based on lead-time demand (and often safety stock).
Safety stock
Extra buffer for demand or supply uncertainty — not included in basic EOQ.
Inventory turnover
How many times stock cycles through sales in a period — a performance metric, not a lot size.
MOQ
Supplier minimum. It can force you above EOQ and raise holding cost.
Pack / carton size
Order multiples required by packaging. Practical EOQ should align to these multiples.
Ready for complete business operations?
Calculate ideal order quantities here, then run purchase orders, stock control, quotations, and GST billing together in T7ERP. T7ERP connects invoices, quotations, purchase orders, delivery challans, inventory, and accounting — built for Indian SMBs.
- No credit card to explore
- GST-ready workflows
- Made for India
Inventory & Stock
GST Billing & Reports
Multi-Branch POS
Purchase to Payment
Frequently Asked Questions
EOQ formula, ordering and holding costs, MOQ, pack size, privacy, and inventory planning for Indian businesses.
Ready to manage inventory across every SKU?
Use this EOQ result for a single item, then explore T7 free tools for purchase orders, invoices, and more.