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Calculation Machine

EOQ Calculator

Economic order quantity and cycle cost.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

Results
Economic order quantity
1,095
Orders per year
21.9
Total annual cost
$3,724.51
Days between orders
16.7

Quick answer

EOQ is the order size where ordering costs and holding costs are balanced.

The formula

EOQ = √(2DS ÷ H)

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Annual demand24000 units
  • Cost per order85 $
  • Holding cost per unit/yr3.4 $

Result

  • Economic order quantity1,095
  • Orders per year21.9
  • Total annual cost$3,724.51
  • Days between orders16.7

How to use the EOQ Calculator

  1. 1Enter annual demand in units.
  2. 2Enter the fixed cost of placing an order.
  3. 3Enter annual holding cost per unit.

Frequently asked questions

Does EOQ handle discounts?

Not directly — compare EOQ cost against discounted bulk order cost.

Is EOQ still relevant?

Yes, as a baseline before layering on lead time and MOQ constraints.

About this calculator