EOQ Calculator — Economic Order Quantity
Find the optimal order quantity that minimizes your total inventory costs. Free, instant.
Reorderly connects to your Shopify store and handles this automatically — 24/7, without you touching it.
Frequently asked questions
What is Economic Order Quantity (EOQ)?
EOQ is the optimal order size that minimizes the total cost of ordering and holding inventory. It balances two opposing costs: ordering too often (high ordering costs) vs. ordering too much at once (high holding costs).
What should I use as my holding cost rate?
Most businesses use 20–30% of unit cost annually. This includes warehouse storage (rent per sq ft × space used), insurance, spoilage risk, and the opportunity cost of capital tied up in inventory.
Does EOQ apply to all products?
EOQ works best for products with relatively stable demand. For highly seasonal products, you may want to calculate EOQ separately for peak and off-peak seasons.