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Calcimator

Economic Order Quantity Calculator

Calculate the optimal order size using the EOQ formula.

Inputs

units
$
$
$

Results

Economic Order Quantity

447 units

Orders Per Year22.4
Order Cycle Time16.3 days
Total Ordering Cost$1,118.03
Total Holding Cost$1,118.03
Total Inventory Cost$2,236.07
Average Inventory Value$5,590.17
How to Use This Calculator
  1. Enter annual demand in units.
  2. Input the fixed order cost (cost to place each purchase order).
  3. Enter the annual holding cost per unit, in dollars.
  4. Enter the unit cost.
  5. Review the EOQ (units per order), orders per year, order cycle time, and total annual inventory cost.

How the result changes with Annual Demand

Annual DemandEconomic Order Quantity
10,000,00114,142 units
35,000,00126,458 units
65,000,00036,056 units
90,000,00042,426 units

What each input means

Annual Demand
Annual demand in units.
Ordering Cost Per Order
Fixed cost to place one order.
Annual Holding Cost Per Unit
Annual cost to hold one unit in inventory.
Unit Cost
Purchase cost per unit for inventory valuation.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Annual Demand = 10000, Ordering Cost Per Order = 50, Annual Holding Cost Per Unit = 5, Unit Cost = 25 = 4 input(s) provided
  2. Calculate Economic Order Quantity
    Economic Order Quantity
    447 = 447
  3. Calculate Orders Per Year
    Orders Per Year
    22.4 = 22.4
  4. Calculate Order Cycle Time
    Order Cycle Time
    16.3 = 16.3

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

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