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Free Tool · Updated June 30, 2026

Economic Order Quantity Calculator

Find the order size that minimizes total annual cost by balancing ordering cost against holding cost. Free, no email.

Calculator · Economic Order Quantity

Calculate economic order quantity

The EOQ balances ordering cost against holding cost to find the order size that minimizes total annual cost.

Economic order quantity707 units14.1 orders per year
Economic order quantity (EOQ)707 units
Orders per year14.1
Days between orders26 days

The EOQ model assumes steady demand and constant costs. Treat it as a planning baseline, then adjust for reality.

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  • The real balance pointSquare root of two times annual demand times order cost, divided by holding cost. The result is not a rounded estimate.
  • Order cost vs holding costSee how the two costs pull against each other, and why ordering too often or too rarely both cost more.
  • Orders per year, in daysAlso get the number of orders per year and the days between each order.
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How This Calculator Works

Economic order quantity (EOQ) is the square root of (2 times annual demand times cost per order, all divided by holding cost per unit per year). Ordering more at once lowers ordering costs but raises holding costs; EOQ is the balance point that minimizes total cost. From there, the calculator derives orders per year and days between orders.

How This Maps to Odoo Inventory

In Odoo, EOQ translates into the order quantity in your reordering rules and the purchase multiples set on your vendors. Instead of ordering at random, you set a lot size that balances your costs. Octura wires those settings to tiered vendor pricing and lead times so each replenishment stays economical.

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Economical Ordering in Odoo

This calculator handles the arithmetic. The real win is lot sizes and purchase rules that minimize total cost, wired to your real vendor pricing. That is what we do.

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How this calculation is made

The Octura Economic Order Quantity Calculator is calculated as the square root of (2 × annual demand × cost per order ÷ holding cost per unit per year). EOQ is the order size at which ordering cost and holding cost are equal, which is where total inventory cost is lowest.

Backed by real migrations

Numbers like yours, validated on real migrations

These are three engagements where the projection actually turned into operational reality on Odoo, and the full case studies live on the migration service page.

  • ManufacturingV12 → V17

    Industrial Manufacturer, Texas

    12custom modules carried over, zero data lost

  • DistributionV14 → V18

    Wholesale Distributor, Quebec

    30%faster page loads once the upgrade shipped

  • Professional ServicesCE → Enterprise

    Consulting Firm, Brussels

    0hproduction downtime during cutover

Official Odoo Partner · 50+ Migrations Delivered · V8 through V19 Verify our partner status on odoo.com →

See the full case studies on migration →

Frequently Asked Questions

  • 01

    How do I calculate economic order quantity?

    It is the square root of (2 × annual demand × cost per order / holding cost per unit per year). For example, sqrt(2 × 10,000 × 50 / 2) is about 707 units.

  • 02

    What is the cost per order?

    It is the fixed cost of placing one order: admin time, fixed freight, receiving, and inspection. It does not depend on how much you order.

  • 03

    How do I estimate holding cost per unit?

    Take your annual carrying rate (often 20% to 30%) times the unit cost of the product. Our carrying cost calculator helps you size it.

  • 04

    Does EOQ work for variable demand?

    The model assumes steady demand. For highly variable demand, use EOQ as a baseline, then adjust with safety stock and reordering rules.