Enter the carrying cost per unit per year, the fixed cost per order, and the demand of units per year into the EOQ calculator below. EOQ determines the most cost-efficient way for a company to order goods.

- Margin Calculator
- Cost of Equity Calculator
- Average Variable Cost Calculator
- Maximum Revenue Calculator
- Markdown Calculator
- MPC Calculator

## EOQ Formula

The following formula is used in the EOQ calculator above:

EOQ = SQRT(2DS/H)

- Where D is the demand in units per year
- S is the order cost ($)
- H is the holding cost ($)

## EOQ Definition

EOQ is the ideal quantity to be ordered by a company to minimize holding costs, shortage costs, and order costs.

## How to calculate EOQ?

How to calculate EOQ?

**First, determine the fixed cost per order.**The is the total cost of an order.

**Next, determine the demand.**Calculate or measure the annual demand.

**Next, determine the carrying cost.**Also, known as the holding costs, measure the carrying cost per unit per year.

**Finally, calculate the EOQ.**Using the formula above, calculate the EOQ.

## FAQ

**What is EOQ?**

EOQ is the ideal quantity to be ordered by a company that would minimize holding costs, shortage costs, and order costs.