Free EOQ Calculator - Economic Order Quantity Tool

📊 Free EOQ Calculator

Calculate Economic Order Quantity instantly. Reduce costs, optimize inventory, and boost profits with our free tool.

📥 Enter Your Data

Total units you need per year
Cost to place one order (shipping + handling)
Cost to store one unit for a year
Purchase price per unit

📈 Your Results

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Enter your data to see results

Your optimal order quantity and cost breakdown will appear here

How to Use This EOQ Calculator

Follow these simple steps to optimize your inventory in seconds

1

Enter Annual Demand

Input total units you sell or use in one year. Check your sales reports or inventory records.

2

Add Ordering Cost

Include shipping, handling, and processing costs for each order you place with suppliers.

3

Input Holding Cost

Add storage, insurance, and capital costs for keeping one unit in inventory for a year.

4

Get Results

Click calculate to see your optimal order quantity, frequency, and total annual costs.

Why Use Our EOQ Calculator?

Benefits of optimizing your inventory with economic order quantity

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Reduce Costs

Minimize total inventory costs by finding the perfect balance between ordering and holding expenses. Typical savings: 15-30%.

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Avoid Stockouts

Never run out of stock again. EOQ helps you maintain optimal inventory levels to meet customer demand consistently.

⏰

Save Time

Stop guessing order quantities. Get precise, data-driven numbers in seconds instead of hours of manual calculations.

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Better Cash Flow

Free up cash tied in excess inventory. Invest savings in growth, marketing, or other business opportunities.

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Accurate Planning

Plan your purchasing budget with confidence. Know exactly how much to order and when throughout the year.

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100% Free & Private

No signup required. Your data stays on your device. Use unlimited times without any charges or restrictions.

Who Should Use This Tool?

Perfect for anyone managing inventory or making purchasing decisions

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Retailers

Store owners managing physical products

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Manufacturers

Raw materials and production planning

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E-commerce

Online stores and dropshippers

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Restaurants

Food and beverage inventory

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Pharmacies

Medical supplies and drugs

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Auto Parts

Vehicle parts and accessories

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Fashion

Clothing and apparel stores

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Hardware

Tools and building materials

The EOQ Formula Explained

Understanding the math behind economic order quantity

EOQ = √(2 × D × S / H)

Where:

  • 📌 D = Annual Demand (units per year)
  • 📌 S = Ordering Cost (per order)
  • 📌 H = Holding Cost (per unit per year)
  • 📌 EOQ = Optimal order quantity that minimizes total costs

Frequently Asked Questions

Common questions about EOQ and our calculator

What is EOQ and why is it important? +
EOQ (Economic Order Quantity) is the ideal number of units you should order to minimize total inventory costs. It helps you find the perfect balance between ordering costs (shipping, handling) and holding costs (storage, insurance). Using EOQ can reduce your inventory costs by 15-30% while ensuring you never run out of stock.
Is this EOQ calculator really free? +
Yes! Our EOQ calculator is 100% free to use. No signup required, no credit card needed, and no limits on calculations. We believe every small business owner should have access to professional inventory management tools without paying expensive software fees.
How accurate is this calculator? +
Our calculator uses the standard EOQ formula taught in business schools and used by Fortune 500 companies. The math is precise and follows the classic Wilson EOQ model. However, remember that EOQ is a starting point - you should adjust for real-world factors like supplier minimums, seasonal demand, and storage limits.
What if I have multiple products? +
Calculate EOQ separately for each product. Each product has different demand, costs, and holding requirements. For businesses with hundreds of products, focus on your top 20% of items (Pareto principle) that generate 80% of your revenue. Our free version handles one product at a time.
How do I find my ordering cost? +
Ordering cost includes all expenses to place and receive an order: shipping fees, handling charges, staff time to process the order, inspection costs, and any administrative expenses. For small businesses, a good estimate is $25-$100 per order. If unsure, start with $50 and adjust later.
What is holding cost and how to calculate it? +
Holding cost (carrying cost) is what you spend to store inventory for a year. It includes warehouse rent, insurance, security, utilities, and cost of capital (money tied up in inventory). A simple rule: holding cost is usually 20-30% of your item's purchase price annually. For a $10 item, use $2-$3 as holding cost.
Can I use this for seasonal products? +
Standard EOQ works best for steady demand. For seasonal items, calculate EOQ using your peak season demand, then adjust order timing. Alternatively, calculate separately for each season. Remember: EOQ is a guide, not a rule - use your business judgment for seasonal fluctuations.
Is my data safe with this calculator? +
Absolutely! This calculator runs entirely in your browser. We don't store, track, or transmit any of your data. Everything stays on your computer. You can even use this tool offline after loading the page once. Your business information remains completely private.

Ready to Optimize Your Inventory?

Join thousands of business owners saving money with smart inventory decisions

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What is EOQ? A Complete Guide to Economic Order Quantity

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