Why you need this
Economic Order Quantity (EOQ) calculates the optimal order size to minimize the sum of ordering costs and holding costs.
It balances the trade-off: Order too often (high ordering costs) vs. Order too much (high holding costs).
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=SQRT((2 * Demand * OrderCost) / HoldingCost)
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Quick context
- • Works in both Excel and Google Sheets.
- • Use when you need consistent, auditable results.
- • Copy the snippet above and adjust only the ranges.
When to use
Learn how to use the Excel EOQ Formula formula.
Disclaimer: While we strive for accuracy, these formulas are provided "as is" without warranty of any kind. Please verify all results before use.
Version Control Risk
EOQ assumes constant demand. In reality, seasonality breaks this static formula instantly.
See inventory Alternatives