Enter matching periods
Use the same time period for Demand per period and Holding cost per unit per period. Enter Ordering cost per order as the fixed cost for one order, choose Currency symbol, and select Calculate EOQ.
- Enter Demand per period as the units used or sold during the period you are measuring.
- Enter Ordering cost per order as the fixed cost of placing one order.
- Enter Holding cost per unit per period using the same period as Demand per period.
- Choose Currency symbol, then select Calculate EOQ.
- Review Result and the assumptions table. When a result is available, use Copy result or Download result (.txt).
What the EOQ calculation returns
The formula combines demand, Ordering cost per order, and Holding cost per unit per period into an Economic order quantity. Result shows Orders per period and Total inventory cost for the period. The assumptions table also lists Time between orders, Ordering cost total, and Holding cost total.
Demand per period: 10,000
Ordering cost per order: $50
Holding cost per unit per period: $2
Economic order quantity: 707.11 units/order
Orders per period: 14.14
Total inventory cost for the period: $1,414.21The calculation uses EOQ = √(2 × Demand × Ordering cost ÷ Holding cost). It divides demand by EOQ for Orders per period, then adds the ordering cost total and the holding cost total.
What each input controls
Demand per period is the number of units used or sold in the selected period. Holding cost per unit per period is the cost assigned to one unit for that same period. Ordering cost per order is the fixed cost assigned to one order.
Each numeric input must be greater than zero. A blank, invalid, zero, or negative value shows an error and hides Result. Currency symbol changes the symbol shown with money values. It does not convert the amounts or apply an exchange rate.
Assumptions built into the formula
The calculation assumes constant demand, a fixed Ordering cost per order, and a constant Holding cost per unit per period. It excludes quantity discounts, replenishment lead time, safety stock, stockout costs, and changing demand. The page uses the numbers you enter and does not fetch supplier prices, market data, or inventory records.
Choose a calculator for a different input
Use Business Calculators for another business measure. Choose the Inventory Planning Calculator when you need EOQ with reorder point, safety stock, or inventory turnover. Use the Reorder Point Calculator for average daily demand, maximum daily demand, and lead time. Use the Safety Stock Calculator for demand variability, lead-time variability, and a target service level.
Frequently asked questions
What is the economic order quantity formula?
EOQ is the square root of (2 x demand x ordering cost per order / holding cost per unit per period). The calculator uses it as the order size for the other result calculations.
How should I enter demand and holding cost for an EOQ calculation?
Enter demand for one period and holding cost per unit for that same period. For example, annual demand needs an annual holding cost.
Why does the EOQ calculator reject zero?
Demand per period, Ordering cost per order, and Holding cost per unit per period must each be greater than zero. Blank, invalid, zero, and negative values trigger a validation error.
Can this EOQ calculator use live prices?
The calculator uses the numbers you enter. It does not read supplier prices, market data, or inventory records.