Accounting Share · Inventory & purchasing
Economic Order Quantity Calculator
Estimate the order quantity that balances annual ordering costs and cycle-stock holding costs under the classic EOQ model.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
EOQ = √(2 × Annual demand × Order cost ÷ Annual holding cost)
Estimate the order quantity that balances annual ordering costs and cycle-stock holding costs under the classic EOQ model.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Annual demand in units: A nonnegative numeric input in the units specified by the label.
- Ordering cost per order: A nonnegative numeric input in the units specified by the label.
- Annual holding cost per unit: A nonnegative numeric input in the units specified by the label.
Worked example
Follow one calculation.
- Annual demand in units
- 10000
- Ordering cost per order
- 50
- Annual holding cost per unit
- 2
- Calculated result
- 707.1068 units
Load this example in the interactive form to inspect the intermediate amounts.
Assumptions and interpretation
Assumes steady known demand, constant costs, instantaneous replenishment and no quantity discounts or stockouts. EOQ is an economic estimate, not a purchase instruction.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the economic order quantity calculation measure?
Estimate the order quantity that balances annual ordering costs and cycle-stock holding costs under the classic EOQ model.
Which assumptions can change the result?
Assumes steady known demand, constant costs, instantaneous replenishment and no quantity discounts or stockouts. EOQ is an economic estimate, not a purchase instruction.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Inventory reporting reference: IAS 2. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
