1 Other formulas that you can solve using the same Inputs

Total Inventory Cost
Total Inventory Cost=Carrying cost per unit per year*(Quantity of each order/2)+Fixed cost per order*(Demand in units per year/Quantity of each order) GO

Economic Order Quantity Formula

Economic Order Quantity=((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2)
More formulas
Free Cash Flow GO
Free Cash Flow to Firm GO
Break-Even Point GO
Contribution Margin per Unit GO
Acid Test Ratio GO
Target Inventory Investment GO
Weighted Average Cost of Capital GO
Total Inventory Cost GO
Return on capital employed GO
Solvency Ratio GO
Percentage off GO
Operating Expense Ratio GO
Beginning Inventory GO
Estimate at completion GO
Diluted Earnings per Share GO
Days in Inventory GO
Debt Coverage Ratio GO
Dividends Per Share GO
Estimated Earnings GO
Preferred Stock GO
Retention Ratio GO

How to Calculate Economic Order Quantity?

Economic Order Quantity calculator uses Economic Order Quantity=((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2) to calculate the Economic Order Quantity, Economic order quantity is an equation for the inventory that determines the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate, and other variables. Economic Order Quantity and is denoted by EOQ symbol.

How to calculate Economic Order Quantity using this online calculator? To use this online calculator for Economic Order Quantity, enter Carrying cost per unit per year (Ch), Fixed cost per order (Cf) and Demand in units per year (D) and hit the calculate button. Here is how the Economic Order Quantity calculation can be explained with given input values -> 2 = ((2*500*2000)/500000)*(1/2).

FAQ

What is Economic Order Quantity?
Economic order quantity is an equation for the inventory that determines the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate, and other variables and is represented as EOQ=((2*Cf*D)/Ch)*(1/2) or Economic Order Quantity=((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2). Carrying cost per unit per year refers to the total cost of holding inventory for a unit per year, Fixed costs per order are the cost that does not change with an increase or decrease in the amount of goods or services produced or sold and Demand in units per year represents the total demands of the unit per year.
How to calculate Economic Order Quantity?
Economic order quantity is an equation for the inventory that determines the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate, and other variables is calculated using Economic Order Quantity=((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2). To calculate Economic Order Quantity, you need Carrying cost per unit per year (Ch), Fixed cost per order (Cf) and Demand in units per year (D). With our tool, you need to enter the respective value for Carrying cost per unit per year, Fixed cost per order and Demand in units per year and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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