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Economic order quantity (EOQ) calculator

Overview

Find the order size that balances ordering costs against the cost of holding stock, and when to reorder.

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Inventory Tracker and Reorder Workbook

Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.

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How it works

How it works

EOQ = square root of (2 x annual demand x cost per order / holding cost per unit per year). The reorder point is daily demand times lead time, plus safety stock.

FAQ

About this calculator

What does EOQ assume?

Steady demand, a fixed cost per order and a fixed holding cost per unit. Real demand varies, so treat the result as a starting point.

What counts as holding cost?

Storage, insurance, spoilage and the cost of cash tied up in stock, per unit per year.

How is safety stock set?

It is a cushion for demand or delivery surprises. The right level depends on how variable your demand and lead times are.

Is anything saved?

No. The math runs in your browser and nothing you enter is sent to us.

Is this tax or financial advice?

No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.

Related: inventory turnover calculator, cost of goods sold calculator. See all free tools. More free tools: Compound interest calculator, Prorated rent calculator, LTV and CAC calculator, or see all free tools.

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Excel workbook

Inventory Tracker and Reorder Workbook

Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.

See what is inside ($34)

Also in the Product Seller Bundle: 3 products for $65 instead of $82 separately.

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