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Free EOQ Calculator (Economic Order Quantity)

Find the order size that keeps your total cost of ordering and holding stock lowest, and how often to order.

  • 100% free
  • No signup
  • Runs in your browser. Nothing is uploaded
units
₹

Freight, paperwork, receiving and checking. Not the price of the goods

Cost of holding stock for a year

₹
%

Interest, rent, insurance, expiry/damage. 20–30% is common

Best quantity to order each time

775 units

Orders per year
15.5
Order about every
24 days
Yearly ordering cost
₹7,742
Yearly holding cost
₹7,750
Total yearly cost
₹15,492

Know what sells: TracEasy tracks stock batch by batch, records purchases and warns you before items run low.

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The EOQ formula

EOQ = √(2 × D × S ÷ H)

  • D: units sold per year
  • S: cost of placing one order
  • H: cost of holding one unit for a year

At the EOQ, your yearly ordering cost and yearly holding cost are equal. That’s the balance point where the total is lowest. The calculator shows both so you can see it.

When EOQ needs adjusting

  • Supplier minimums or case packs: round the EOQ to the nearest case or minimum order quantity.
  • Quantity discounts or schemes: a bigger order may be cheaper overall even above the EOQ. Compare the saving with the extra holding cost.
  • Short shelf life: never order more than you can sell before expiry, whatever the EOQ says.

EOQ tells you how much. The reorder point calculator tells you when.

Frequently asked questions

What is EOQ?

Economic order quantity is the order size that keeps your total yearly cost of ordering and holding stock as low as possible. Order too little and you pay for many orders; order too much and money sits in stock.

What is the EOQ formula?

EOQ = √(2 × annual demand × cost per order ÷ holding cost per unit per year). For 12,000 units a year, ₹500 per order and ₹20 holding cost per unit: √(2 × 12,000 × 500 ÷ 20) ≈ 775 units.

What counts as the cost of placing an order?

Everything you spend per order regardless of size: freight or delivery charges, the time spent raising the PO, receiving and checking goods, and payment processing. Not the price of the goods themselves.

What counts as holding cost?

The yearly cost of keeping one unit in stock: interest on the money tied up, godown rent, insurance, and losses from damage or expiry. Businesses often estimate 20–30% of the item’s cost per year.

Related free tools

Free Reorder Point Calculator

When to reorder, with safety stock and an “order now?” check.

Free Inventory Turnover

Turnover ratio and days of inventory from COGS and stock values.

Free Purchase Order

Order stock from suppliers with agreed rates, GST and delivery date.

Last reviewed 11 September 2026 by the TracEasy team. For information only. Check tax positions for your business with your accountant.