For Online Sellers

EOQ Calculator: How Much Stock to Order Each Time

Free tool · Updated October 2, 2026 · By CouponTalk · Reviewed by CouponTalk Expert Reviews on October 2, 2026

Your result

Enter your measurements to see your result.

Quick answer

EOQ is the order size that keeps ordering cost plus storage cost lowest: EOQ = √(2 × yearly demand × cost per order ÷ holding cost per unit per year). Selling 1,200 units a year, with ₹500 per purchase order and a ₹200 product held at 20% a year (₹40 per unit), EOQ is 173 units. That means about 7 orders a year, one every 53 days.

How to use this calculator

Enter yearly unit sales. Multiply monthly sales by 12 if needed.
Enter what each purchase order costs you beyond the goods: freight, loading, your time.
Holding cost covers storage, capital and damage, often 15–30% of the unit cost a year.

Formula

EOQ = √(2 × D × S ÷ H)

D = units sold per year, S = cost per purchase order, H = holding cost per unit per year (unit cost × holding %)

Example: H = ₹200 × 20% = ₹40, so EOQ = √(2 × 1,200 × 500 ÷ 40) = √30,000 = 173 units, about 7 orders a year (one every 53 days)

EOQ assumes steady demand. Add safety stock before sale seasons and round to your supplier's carton size.

Frequently asked questions

What is a good holding cost percentage?

Most small sellers use 15–30% of the product cost a year. Use the higher end if you rent a warehouse, borrow money for stock, or sell items that go out of fashion.

Should I always order exactly the EOQ?

Use it as a starting point. Round to your supplier's carton size or MOQ, and add safety stock before sale seasons such as Diwali.

Does EOQ work for FBA stock?

Yes, but add FBA storage fees to your holding cost and check Amazon's inventory limits before sending stock.