Minimum Order Quantity Calculator
Compare costs at your desired quantity vs. MOQ, calculate savings per unit, and find the break-even point including storage costs.
About this calculator
This calculator weighs the classic apparel sourcing tradeoff: pay a higher per-unit price for exactly the quantity you need, or commit to a factory's minimum order quantity (MOQ) at a lower unit price and carry the excess as inventory. It compares the total cost of buying your desired quantity at the below-MOQ price against the total cost of ordering the full MOQ at the discounted price, and reports the per-unit savings the discounted price represents. Because ordering the MOQ usually means ending up with more units than you need, the calculator also factors in a monthly storage cost applied to those excess units (MOQ minus desired quantity) and rolls that into an effective per-unit cost for the MOQ option — this is the number that actually determines whether the MOQ discount pays off once carrying costs are included.
The break-even quantity answers a related question: at what order volume does the per-unit savings from MOQ pricing get fully offset by the storage cost of the units you don't immediately need? Below that volume, storage costs erode the discount faster than it helps; above it, the MOQ deal is a clear win even accounting for excess inventory. Keep in mind this model only counts storage cost as the carrying cost of excess units — it doesn't account for markdown risk, cash tied up in inventory, or the chance unsold units never sell at all, all of which make ordering exactly what you need look better than the raw unit-price comparison suggests.
Savings per Unit at MOQ
$4.00
Inputs
Comparison
Cost at Desired Qty
$2,400.00
Cost at MOQ
$4,000.00
Total Price Savings
$800.00
Break-Even Quantity
0 units
Excess Storage Cost
$150.00
Effective Per Unit
8.3
How to Use This Calculator
- Enter MOQ (Minimum Order Quantity) and Unit Price at MOQ from your supplier.
- Set Unit Price Below MOQ — the higher price if you order fewer than the MOQ.
- Enter Desired Quantity and Storage Cost per Excess Unit per month.
- Review Cost at Desired Qty versus Cost at MOQ and Total Price Savings from committing to the MOQ.
- Check Break-Even Quantity and Excess Storage Cost to decide if the MOQ economics make sense for your volume.
How the result changes with Unit Price Below MOQ
| Unit Price Below MOQ | Savings per Unit at MOQ |
|---|---|
| $6.00 | -$2.00 |
| $9.00 | $1.00 |
| $18.00 | $10.00 |
| $30.00 | $22.00 |
What each input means
- MOQ (Minimum Order Quantity)
- Factory's minimum order quantity for the discounted price.
- Unit Price at MOQ
- Per-unit cost when ordering at or above the MOQ.
- Unit Price Below MOQ
- Per-unit cost for smaller orders below the MOQ.
- Desired Quantity
- The number of units you actually need.
- Storage Cost per Excess Unit
- Monthly cost to store each excess unit if you order at MOQ.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersMOQ (Minimum Order Quantity) = 500, Unit Price at MOQ = 8, Unit Price Below MOQ = 12, Desired Quantity = 200 = 5 input(s) provided
- Calculate Savings per Unit at MOQSavings per Unit at MOQ4 = $4
- Calculate Cost at Desired QtyCost at Desired Qty2400 = $2,400
- Calculate Cost at MOQCost at MOQ4000 = $4,000
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.
Frequently Asked Questions
What does the 'Break-Even Quantity' output actually tell me?
It's the desired quantity at which the per-unit price advantage of ordering at MOQ gets completely eaten up by the storage cost of the units you'd have left over. Below that quantity, storing the excess costs more than the discount is worth; above it, committing to the MOQ pays off even after accounting for carrying the extra inventory.
If the MOQ price is lower, why would ordering at MOQ ever be the wrong choice?
Because MOQ orders usually leave you with more units than you actually need, and this calculator applies a monthly storage cost to every one of those excess units (MOQ minus desired quantity). If your desired quantity is far below the MOQ, the accumulated storage cost on a large excess can outweigh the per-unit savings, which is exactly what the Effective Per Unit and Excess Storage Cost outputs are meant to surface.
What is 'Effective Per Unit' comparing against, and why does it matter?
It's the total MOQ-order cost (unit cost plus excess storage cost) divided by the MOQ quantity — the real all-in cost per unit once carrying the extra inventory is factored in. Comparing this number to Unit Price Below MOQ tells you whether committing to the larger order is genuinely cheaper once storage is included, rather than just cheaper on the supplier's price sheet.
What costs does this calculator leave out of the MOQ decision?
It only models the monthly storage cost of excess units — it doesn't account for markdown risk if those extra units never sell at full price, the cash tied up in unsold inventory, or the possibility some units never sell at all. Those factors typically make ordering exactly what you need look relatively more attractive than the storage-cost comparison alone suggests.
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