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EOQ Calculator
Find economic order quantity using annual demand, ordering cost and annual holding cost per unit. Free EOQ calculator with assumptions and a worked example.
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Sharing is optional. WhatsApp includes your calculated result; LinkedIn shares this tool’s link. Copy the result to add it to your post.How to calculate eoq
EOQ = √(2 × D × S ÷ H)
D is annual unit demand. S is the incremental cost of placing one order. H is the annual carrying cost of one unit. Keep both costs in the same currency.
Worked example
For annual demand 10,000 units, order cost 50 and annual holding cost 2 per unit: √(2 × 10,000 × 50 ÷ 2) = 707.11 units.
When to use this formula
The basic EOQ model assumes steady demand, known replenishment, no quantity discounts and no stockouts. It excludes purchase cost that does not vary with order size. Round to practical pack sizes only after checking constraints.
Formula reference: Read the source explanation.
Is holding cost the same as unit purchase price?
No. Holding cost is the annual cost of carrying one unit, including relevant capital, storage and risk costs.
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