Economic order quantity calculator
Find the order size that lowers total ordering and holding cost.
Result
Economic order quantity calculator
Order quantity
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Enter annual demand, the cost to place an order, and holding cost per unit.
Ballpark estimate, check before you buy or quote.
A simple estimate, not advice.
Estimate for planning only. This is not tax, legal, accounting or financial advice. Results depend on the figures you enter. Check all numbers, rates and rules with the official source or a qualified professional before relying on them.
How this works and common questions
About this tool
The order quantity is the square root of 2 times annual demand times the cost to place one order, divided by the yearly holding cost per unit. A simple estimate, not advice.
How it works
Multiply 2 by annual demand and by the cost to place one order. Divide by the yearly holding cost of one unit. The order quantity is the square root of that result.
Rules
Demand is a whole number of units. Both costs are Canadian dollars. The square root is rounded half up to 2 decimal places. A simple estimate, not advice.
Questions
Does this include the price of the goods?
No. The order cost is the cost of placing the order. Holding cost is the yearly cost of keeping one unit.
What if holding cost is zero?
There is no result. A zero holding cost would make the formula undefined.
Should I order exactly this quantity?
It is a size from your figures. Minimum orders and bulk breaks are separate decisions.
Do I need an account?
No. The tools work without one. You only need to sign in to save your work.
Is what I type saved?
No. Nothing is saved unless you sign in and choose Save. Otherwise it stays on the page.
Do you show ads or sell my information?
No. We show no ads and we do not sell your information.
Is this tax or legal advice?
No. Results are estimates for planning. Check rates and rules with the official source or a qualified professional.
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Estimate for planning only. This is not tax, legal, accounting or financial advice. Results depend on the figures you enter. Check all numbers, rates and rules with the official source or a qualified professional before relying on them.