EOQ & Reorder Point Calculator · India
Find the cheapest order size (Economic Order Quantity) and the exact stock level to reorder at, so you never over-stock or run out. For MSMEs, traders and manufacturers managing inventory and working capital.
Your inputs
Per item. Use any consistent unit (pieces, kg, boxes).
Results
The optimal ordering policy for this item.
EOQ & reorder point: order the right amount at the right time
Two questions decide whether your inventory helps or hurts your cash flow: how much to order each time, and when to reorder. The Economic Order Quantity (EOQ) answers the first by finding the order size with the lowest total cost; the reorder point (ROP) answers the second by telling you the stock level at which to place the next order. This free calculator does both for any item, built for Indian MSMEs, traders and small manufacturers.
The EOQ formula
EOQ = √( 2 × D × S ÷ H )
where D = annual demand, S = cost to place one order (paperwork, transport, inspection), and H = cost to hold one unit for a year (storage, capital, spoilage). EOQ is the sweet spot where ordering cost and holding cost are equal and their total is lowest — order more and holding costs balloon; order less and you pay ordering costs too often.
The reorder point formula
ROP = (average daily demand × lead time) + safety stock
Lead time is how long the supplier takes to deliver. Safety stock is a buffer for demand spikes or late deliveries. When your stock drops to the ROP, place an order of EOQ units — it should arrive just as you would otherwise run out.
Setting safety stock
You can enter safety stock directly, or estimate it from demand variability with Safety stock = Z × ฯ × √(lead time), where Z is the service-level factor (1.65 for 95%) and ฯ is the standard deviation of daily demand. A higher service level means fewer stockouts but more cash tied up.
Why it matters for working capital
Over-ordering is the silent killer of small-business cash flow in India — money sits on the shelf instead of in the bank. EOQ keeps each order lean, while the reorder point prevents the opposite problem of running dry and losing sales. Together they free up working capital without risking stockouts.
Frequently asked questions
What is the EOQ formula?
EOQ = square root of (2 × annual demand × ordering cost ÷ holding cost per unit per year). It minimises the combined cost of ordering and holding inventory.
How do I find the reorder point?
Multiply average daily demand by the supplier lead time in days, then add your safety stock. Reorder when stock reaches that level.
What costs go into holding cost?
Storage or rent, the cost of capital tied up, insurance, spoilage, breakage and obsolescence — typically 15–30% of the unit value per year.
Is this free and private?
Yes — completely free, no sign-up, and everything runs in your browser. Nothing you enter is stored or uploaded.