Economic Order Quantity (EOQ) Calculator

Find the order size that minimizes total inventory cost.

Economic order quantity (EOQ) balances the cost of ordering too often against the cost of holding too much. Enter your annual demand, the fixed cost per order, and the cost to hold one unit for a year.

Annual demand (units) Cost per order ($) Holding cost per unit/year ($)

Results update when you click Calculate or change a value.

Economic order quantity —

Orders per year —

EOQ = square root of (2 x annual demand x order cost / holding cost per unit)

How it works

EOQ comes from minimizing the sum of two costs that move in opposite directions. Order in small batches and you pay the per-order cost many times; order in huge batches and you tie up cash and rack up holding costs. The square-root formula finds the sweet spot.

EOQ assumes steady demand and ignores supplier minimums, so treat it as a starting point rather than gospel. Skuwell factors order economics, MOQs, and your budget together when it recommends a purchase quantity.

Learn the terms

In the platform

Purchasing & Forecasting module

Next step

Skuwell does this math for every SKU, automatically.

Reorder points, safety stock, turnover, and GMROI — computed live and turned into purchase orders. See it on a 30-minute walkthrough.

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