EOQ Calculator

Enter your yearly demand and costs to find the best order size and when to reorder.

Yearly demand (units)

Cost per order

Holding cost per unit per year

Working days per year

Supplier lead time (days)

Safety stock (units)

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The EOQ formula

EOQ = √(2 × D × S ÷ H), where D is yearly demand, S the cost of placing one order (delivery, admin, handling) and H the cost of holding one unit for a year (storage, insurance, money tied up, spoilage). Ordering in that quantity balances the two costs — order less and you pay more in ordering, order more and you pay more in holding.

Reorder point

Reorder point = daily demand × lead time + safety stock. When stock falls to that level, place the next order so it arrives before you run out. With 12,000 units a year, a 7-day lead time and 100 safety stock, reorder at about 330 units.

EOQ assumes steady demand and fixed costs. Adjust for bulk discounts, seasonal demand (Ramadan, Eid, school season) and supplier minimums.

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How it works

Enter — type or paste your values or text.
Get the result — it is worked out in your browser.
Adjust — change the inputs to compare, or copy the result.

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EOQ Calculator

The EOQ formula

Reorder point

How it works

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