EOQ & Reorder Point Calculator
Order too much and you tie up cash; too little and you reorder constantly. Find the economic order quantity and the reorder point that balance both.
Inventory management software
Learn moreThe order size that costs least
Every order has two opposing costs: the fixed cost of ordering and the ongoing cost of holding stock. The economic order quantity is the sweet spot that minimizes their total. Pair it with a reorder point — the stock level that triggers a new order — and you avoid both stockouts and overstock.
How it’s calculated & sources
EOQ = √(2 × annual demand × order cost ÷ holding cost). Reorder point = daily usage × lead time. Orders per year = demand ÷ EOQ.
Benchmark: the Wilson EOQ formula — the order quantity that minimizes combined ordering and holding cost.
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
At 12,000 units/year, $75/order and $3/unit holding, EOQ is about 775 units, or ~15 orders a year. With a 7-day lead time, reorder when stock hits ~230 units.
Frequently asked questions
Does EOQ assume steady demand?
Yes — the classic formula assumes constant demand and lead time. It’s a strong starting point; add safety stock for variability.
What is safety stock?
Extra buffer inventory to cover demand spikes or supplier delays. Add it on top of the reorder point based on how variable your demand is.