Use this calculator to estimate economic order quantity calculator from your own assumptions. The calculation runs locally in your browser, and the formula, example, scope, and source are visible below.
How to use this calculator
- Annual demand D (units/year): enter the value for the same scenario and period as the other inputs.
- Ordering/setup cost S ($/order): enter the value for the same scenario and period as the other inputs.
- Annual holding cost H ($/unit/year): enter the value for the same scenario and period as the other inputs.
- Optional workdays/year and lead time for reorder point extension: enter the value for the same scenario and period as the other inputs.
- Replace the example values with values from one consistent scenario.
- Select Calculate and review the primary and supporting results.
- Change one assumption at a time when comparing scenarios, then verify material decisions against the governing source or a qualified professional.
Formula and method
EOQ = sqrt(2*D*S/H)
The implementation uses the audited A13 — Inventory / Working Capital method. Intermediate values retain calculation precision; the interface formats values only for display unless the formula itself specifies a rounding rule.
Worked example
Inputs: D=10,000; S=$50; H=$2/unit/year
Result: EOQ≈707.11 units; Orders/year≈14.14
This is the baseline audited scenario used to check that the page, formula, and displayed result remain aligned.
How to interpret the result
The calculator reports EOQ units; orders/year; cycle inventory. Treat the output as a scenario estimate: it changes when the entered scope, time period, fee basis, or cost definition changes. It does not establish a universal benchmark or guarantee a business outcome.
Assumptions and limitations
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The result is limited to the inputs and A13 — Inventory / Working Capital logic shown on this page.
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Results are informational planning estimates, not accounting, tax, legal, employment, valuation, or investment advice.
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Values are processed in the browser and are not submitted to an application server.
Common mistakes
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H=0.
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D=0.
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ensure H is dollars/unit/year, not a percentage.
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Rounding intermediate values before completing the formula can change the final result.
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A worked example is not a default recommendation; replace every assumption that does not match your case.
Frequently asked questions
What is the formula for Economic Order Quantity (EOQ)?
The calculation applies this audited method: EOQ = sqrt(2*D*S/H) Display rounding is applied after the calculation rather than to intermediate values unless the rule explicitly requires it.
Which accounting or operating period should I use?
For economic order quantity calculator, keep the input definitions consistent and review these boundary conditions: H=0; D=0; ensure H is dollars/unit/year, not a percentage.
What should be included in the inputs?
Use the same period and units for these inputs: Annual demand D (units/year); Ordering/setup cost S ($/order); Annual holding cost H ($/unit/year); Optional workdays/year and lead time for reorder point extension. Keep optional assumptions at their example values only when those values match your scenario.
How should I interpret the result without relying on a universal benchmark?
Read EOQ units; orders/year; cycle inventory as a planning estimate for the assumptions entered. Compare scenarios using the same scope and period; the calculator does not establish a universal target or guarantee an outcome.
How this calculator was created and tested
- Formula basis: the public formula is generated from the audited implementation specification for this calculator, not inferred from a search snippet or an AI answer.
- Validation coverage: 2 of 2 release test vectors are marked Audited for this calculator. The suite covers a normal scenario plus boundary or invalid-input behavior where defined.
- Regression behavior: build checks compare expected outputs, validation states, route integrity, structured data, internal links, and release blockers before publication.
- Automation and AI: automation or AI may assist drafting, organization, and regression work, but it is not treated as an authoritative source and does not override the audited formula, official rate registry, or release blockers.
- Editorial responsibility: MIASIN S.R.O. controls publication, source policy, corrections, and release decisions. No named individual expert review is claimed unless a page explicitly identifies one.
Read the full Methodology, Editorial Standards, and Corrections Policy.
Sources and freshness
Sources are ordered by authority: government or official sources first, then first-party platform sources, educational references, and finally supporting industry references.
- Educational reference: OpenStax
- Supporting industry reference: corporatefinanceinstitute.com
Last reviewed: September 22, 2026
Source set reviewed: September 22, 2026
Next scheduled review: September 22, 2027
Review cadence: Annual