Economic Order Quantity Calculator

Find the optimal order quantity that minimizes total inventory costs — balancing ordering costs against holding costs. The EOQ formula is a cornerstone of inventory optimization for ecommerce businesses.

Annual Demand (units)

Total units sold per year

Ordering Cost ($/order)

Cost to place and receive one order

Unit Cost ($)

Purchase cost per unit

Holding Cost Rate (%/year)

Storage + insurance + opportunity cost

EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost per Unit). Assumes constant demand — use as a baseline and adjust for lead time variability and supplier minimums.