Economic Order Quantity Calculator
Find the order size that minimises total ordering and holding costs for a product. Enter annual demand, cost per order and holding cost per unit per…
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Find the order size that minimises total ordering and holding costs for a product. Enter annual demand, cost per order and holding cost per unit per year to see economic order quantity and orders per year when you calculate.
Worked example
Example calculated from the starting values. Enter your own values and press Calculate to get your result.
With the default inputs (annual demand = 5,000, cost per order = 50, holding cost per unit per year = 2), the results are: economic order quantity 500; orders per year 10.0.
Quick reference: annual demand vs result
Reference table based on the example values; it is not your calculation result.
| Annual demand | Economic order quantity | Orders per year |
|---|---|---|
| 2,500 | 354 | 7.1 |
| 5,000 | 500 | 10.0 |
| 10,000 | 707 | 14.1 |
| 25,000 | 1,118 | 22.4 |
| 50,000 | 1,581 | 31.6 |
| 100,000 | 2,236 | 44.7 |
Frequently asked questions
What formula does this calculator use?
Economic order quantity = sqrt(2 × d × s ÷ h); Orders per year = d ÷ sqrt(2 × d × s ÷ h). Variables: d = annual demand, s = cost per order, h = holding cost per unit per year.
What do I need to enter?
You need annual demand, cost per order, holding cost per unit per year. Results update as you type.
What is an example result?
With the default inputs (annual demand = 5,000, cost per order = 50, holding cost per unit per year = 2), the results are: economic order quantity 500; orders per year 10.0.
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