EOQ Calculator
Find the order quantity that keeps the combined cost of placing orders and holding stock as low as possible.
Shipping, admin and handling for one purchase order.
Storage, insurance, capital tied up — often 20–30% of unit cost.
Economic order quantity
447 units
Orders per year
11.2
Yearly ordering + holding cost
894.43
Use any currency — just keep it the same for both cost fields.
How the EOQ formula works
Ordering often means paying the per-order cost many times. Ordering rarely means holding lots of stock. EOQ finds the balance point:
EOQ = √( 2 × D × S ÷ H )
D is annual demand, S the cost of placing one order and H the yearly cost of holding one unit.
Pair EOQ with a reorder point so you know both how much and when to order.
Frequently asked questions
When is EOQ not a good fit?+
When suppliers have minimum order quantities, quantity discounts, or when demand is very seasonal. Treat EOQ as a starting point and round to what your supplier sells.
How do I estimate holding cost?+
A common rule of thumb is 20–30% of the unit's value per year, covering storage, insurance, spoilage and the cash tied up in stock.
Does EOQ work for raw materials?+
Yes. For makers, apply EOQ to each purchased part using the annual usage implied by your production plan.
Stop calculating in spreadsheets. Let Stoccly do it.
Stoccly tracks your real consumption, lead times, and demand variability — and turns them into per-warehouse reorder points and stockout forecasts automatically.