Free tool
Economic order quantity (EOQ) calculator
Find the order size that balances ordering costs against the cost of holding stock, and when to reorder.
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How it works
How it works
EOQ = square root of (2 x annual demand x cost per order / holding cost per unit per year). The reorder point is daily demand times lead time, plus safety stock.
FAQ
About this calculator
What does EOQ assume?
Steady demand, a fixed cost per order and a fixed holding cost per unit. Real demand varies, so treat the result as a starting point.
What counts as holding cost?
Storage, insurance, spoilage and the cost of cash tied up in stock, per unit per year.
How is safety stock set?
It is a cushion for demand or delivery surprises. The right level depends on how variable your demand and lead times are.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
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Excel workbook
Inventory Tracker and Reorder Workbook
Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.
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