Economic Order Quantity (EOQ) Calculator

Finance Updated 16 Jun 2026

Economic Order Quantity (EOQ) Calculator is a financial calculator that helps you calculate economic order quantity (eoq) values from your input data. The formula used is: EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost Per Unit)\nOrders Per Year = Annual Demand / EOQ\nOrder Cycle = 365 / Orders Per Year\nTotal Cost = Ordering Cost × Orders/Year + Holding Cost × EOQ/2. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).

Formula

EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost Per Unit) Orders Per Year = Annual Demand / EOQ Order Cycle = 365 / Orders Per Year Total Cost = Ordering Cost × Orders/Year + Holding Cost × EOQ/2

Example Calculation

Inputs

Annual Demand (Units): 5000 units
Ordering Cost Per Order (PKR): 5000 PKR
Holding Cost Per Unit Per Year (PKR): 200 PKR

Suppose you enter: Annual Demand (Units) = 5000, Ordering Cost Per Order (PKR) = 5000, Holding Cost Per Unit Per Year (PKR) = 200. The calculator applies the formula (EOQ = √(2 × Annual Demand × Ordering Cost / Holding Cost Per Unit)\nOrders Per Year = Annual Demand / EOQ\nOrder Cycle = 365 / Orders Per Year\nTotal Cost = Ordering Cost × Orders/Year + Holding Cost × EOQ/2) and shows all output values below. Change any input field to immediately see how the result changes.

Frequently asked questions

What is the Economic Order Quantity (EOQ)?

The Economic Order Quantity (EOQ) Calculator is a financial calculator that helps you calculate economic order quantity (eoq) values from your input data. Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).

When should I use this calculator?

Use this calculator whenever you need a quick, accurate result for economic order quantity (eoq) values from your input data without working through the arithmetic manually.

What units should I enter?

Enter monetary values in your local currency. Enter interest rates as plain numbers (e.g. enter 5 for 5 %).

How accurate are the results?

Assumes constant rates, no additional fees, and no tax unless stated. Actual outcomes vary with market conditions.

How do I interpret the result?

Compare against your financial goals or market benchmarks. A higher figure may mean greater cost or greater return depending on context.

How can I verify the calculation manually?

Use the displayed formula and work through the numbers step by step. If your manual result differs slightly, check rounding and unit conversions first.

Can I use this for planning and budgeting?

Yes. Run best-case, expected, and worst-case inputs to compare outcomes and make safer planning decisions.