Economic Order Quantity Calculator

Free Economic Order Quantity Calculator minimizes total inventory cost using the Wilson EOQ formula. Enter annual demand, order cost, and holding cost to find optimal order size and total annual inventory cost.

annualDemand

orderCost

holdingCostPerUnit

Results

{
  "eoq": 848.53,
  "ordersPerYear": 14.14,
  "totalOrderingCost": 1060.66,
  "totalHoldingCost": 1060.66,
  "totalInventoryCost": 2121.32,
  "valid": true
}

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How It Works

Enter the inputs described in each field label for Economic Order Quantity Calculator. The calculator validates basic constraints such as positive denominators where required and shows clear outputs when data is incomplete. Pull figures from the same reporting period when combining balance sheet and income statement items. Pull figures from the same reporting period when combining balance sheet and income statement items. Pull figures from the same reporting period when combining balance sheet and income statement items. Pull figures from the same reporting period when combining balance sheet and income statement items.

Economic order quantity minimizes the sum of ordering and carrying costs for steady demand. Review summary metrics, breakdown tables, and interpretation bands updated on every keystroke. Compare scenarios by adjusting one assumption at a time to see sensitivity. Use Cash Conversion Cycle and Bootstrapped Breakeven on portfolios.tools when working capital ties to inventory policy. Use Cash Conversion Cycle and Bootstrapped Breakeven on portfolios.tools when working capital ties to inventory policy. Use Cash Conversion Cycle and Bootstrapped Breakeven on portfolios.tools when working capital ties to inventory policy.

Review optimal order quantity and total carrying plus ordering cost. Adjust demand forecasts to see EOQ sensitivity. Compare ordering in larger batches when quantity discounts are on the table.

Use Economic Order Quantity Calculator whenever inputs change: after market moves, new contributions, or revised personal assumptions. Bookmark the page for quick reruns without installing software.

Step by step

Open Economic Order Quantity Calculator and enter your current inputs.
Review calculated outputs and summary tables.
Adjust assumptions and compare scenarios side by side.

Worked example

Enter the sample inputs described in How it works to reproduce the scenario step by step for economic order quantity calculator.

Adjust one input at a time to see sensitivity. Economic Order Quantity Calculator updates instantly so you can stress test optimistic and conservative assumptions before acting.

When to use this calculator

Reach for Economic Order Quantity Calculator when you need quick what if analysis before trades, allocation changes, or plan updates.

Pair with related tools when the decision spans taxes, liquidity, or multi year projections beyond what one formula captures.

Common mistakes

Copying outputs without checking input units or stale market prices is a frequent error with Economic Order Quantity Calculator. Confirm tickers, percentages, and dates before acting.

Running a single baseline scenario ignores tail risks. Stress test with conservative inputs and compare against related tools listed below when the decision is material.

The Formula

EOQ = √(2 × D × S ÷ H)

Total Cost = (D ÷ Q) × S + (Q ÷ 2) × H

where D = annual demand, S = order cost, H = holding cost per unit per year

Classic Wilson EOQ assumes constant demand, instant replenishment, and stable costs. Adjust for quantity discounts manually.

Limitations and assumptions

Classic Wilson EOQ assumes constant demand, instant replenishment, and stable costs. Adjust for quantity discounts manually. Economic Order Quantity Calculator does not replace personalized advice. Fees, slippage, account specific rules, and behavioral constraints may change real world outcomes.

Key terms

What does Economic Order Quantity Calculator measure: Economic order quantity minimizes the sum of ordering and carrying costs for steady demand.
How is the formula applied: The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
Model assumption: Interpret results in context rather than as automatic buy, sell, or accept signals.

Compare alternatives

Use Cash Conversion Cycle and Bootstrapped Breakeven on portfolios. Use those calculators when economic order quantity calculator alone does not capture the full decision.

Internal links on portfolios.tools help you chain calculators: run Economic Order Quantity Calculator first, then validate edge cases with a specialized tool from the related section below.

FAQ

What does Economic Order Quantity Calculator measure?

Economic order quantity minimizes the sum of ordering and carrying costs for steady demand. This calculator runs entirely in your browser on portfolios.tools. Enter your assumptions in the form above and review outputs instantly without sending data to any server. Students use it for homework checks, analysts for quick sanity tests, and founders for scenario planning before building spreadsheet models. Results depend on input quality: stale financials or optimistic growth assumptions can mislead even when the math is correct. Always reconcile outputs with source documents and professional judgment when decisions have material consequences.

How is the formula applied in Economic Order Quantity Calculator?

The formula block on this page shows every intermediate step so you can audit the math against textbook definitions. Classic Wilson EOQ assumes constant demand, instant replenishment, and stable costs. Adjust for quantity discounts manually. Match input units to the formula: percentages as whole numbers unless labels specify decimals, currency in one consistent denomination, and time periods aligned across numerators and denominators. Match input units to the formula: percentages as whole numbers unless labels specify decimals, currency in one consistent denomination, and time periods aligned across numerators and denominators.

How should I interpret Economic Order Quantity Calculator results?

Interpret results in context rather than as automatic buy, sell, or accept signals. Economic order quantity minimizes the sum of ordering and carrying costs for steady demand. Pair this tool with related calculators on portfolios.tools when your decision spans taxes, liquidity, covenants, or multi year projections that one ratio cannot capture alone. Pair this tool with related calculators on portfolios.tools when your decision spans taxes, liquidity, covenants, or multi year projections that one ratio cannot capture alone.

What are common input mistakes with Economic Order Quantity Calculator?

Common mistakes include mixing annual and quarterly figures, ignoring non recurring items in earnings, and treating point estimates as certainty. Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or lenders. Document assumptions when sharing outputs with colleagues or lenders. Document assumptions when sharing outputs with colleagues or lenders. Document assumptions when sharing outputs with colleagues or lenders.

What are the limitations of Economic Order Quantity Calculator?

Limitations include simplified models that omit sector nuance, regulatory changes, and behavioral factors. Classic Wilson EOQ assumes constant demand, instant replenishment, and stable costs. Adjust for quantity discounts manually. This page provides educational math only, not personalized investment, tax, or legal advice. This page provides educational math only, not personalized investment, tax, or legal advice. This page provides educational math only, not personalized investment, tax, or legal advice.

How do I use this Economic Order Quantity calculator on a phone or tablet?

Yes. Economic Order Quantity Calculator runs entirely in your mobile browser with the same formulas as desktop. Optional localStorage may remember inputs on your device when enabled in browser settings.

Where is my data stored when I use Economic Order Quantity Calculator?

Nowhere on our servers. Calculations execute locally in your browser. Optional localStorage saves form fields on your device only and never transmits portfolio numbers over the network.

Should I rely on Economic Order Quantity Calculator for tax or legal decisions?

No. Economic Order Quantity Calculator provides educational math only. Tax law, account rules, and personal circumstances vary. Consult a qualified tax or legal professional before transactions with material consequences.

Related Tools

Use Cash Conversion Cycle and Bootstrapped Breakeven on portfolios.tools when working capital ties to inventory policy.