Enter a supplier's minimum order quantity alongside your own usage and cost numbers to see what committing to that MOQ actually costs in tied-up cash. Pair this with the EOQ calculator to compare against what you'd order without the MOQ constraint, or the carrying cost calculator for the fuller holding-cost picture.
MOQ Calculator
MOQ covers
3.3 months
Extra annual holding cost of the units beyond one month's usage: $350.00
How to use this number
If a supplier's MOQ covers more than 3-4 months of usage for a non-critical SKU, that's usually a sign the discount isn't worth the cash tied up — especially for items with a shelf life, a risk of obsolescence, or a high holding cost rate.
For SKUs where you genuinely need the volume anyway (fast movers, seasonal stock-up), a high MOQ is simply the cost of doing business with that supplier and this calculation matters less — it matters most for slower-moving items where the MOQ forces you into a much bigger order than you'd otherwise place.
Frequently Asked Questions
How do I calculate the impact of a supplier MOQ?
Divide the MOQ by your average monthly usage to see how many months of supply it covers (Months of Supply = MOQ ÷ Average Monthly Usage). Then multiply the units beyond one month's usage by your unit cost and annual holding cost rate to see the extra cash tied up in holding that buffer.
Is a higher MOQ always a bad deal?
Not necessarily — a lower per-unit price at a higher MOQ can still be worth it if the unit cost savings outweigh the extra holding cost. This calculator shows the holding-cost side of that tradeoff; compare it against whatever per-unit discount the supplier is offering at that MOQ.
What if the MOQ covers less than a month of usage?
Then it isn't really constraining you — you'd be reordering that quantity anyway. MOQ only matters as a planning factor once it forces you to hold more stock than your normal reorder cycle would.
Does this calculator save my numbers?
No. This is a client-side calculation only — nothing is sent to a server or saved. Refreshing the page resets it to the defaults.
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