Inventory Reorder Cost Calculator
What placing an order actually costs.
Cost per order
$90.00
$2,160 a year across 24 orders
This is the figure EOQ needs. Guessing it low pushes you toward more frequent orders than are actually economic.
How the Inventory Reorder Cost Calculator works
Ordering cost is the fixed cost of placing an order regardless of its size, and it is the input people guess at when calculating EOQ. Building it up from actual time and charges usually produces a larger figure than expected — which argues for fewer, bigger orders than instinct suggests.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What goes into ordering cost?
Time spent raising and chasing the order, supplier communication, any flat freight or handling charge, receiving and putaway labour, inspection, and the administrative cost of processing the invoice and payment.
What is a typical cost per order?
£40-150 for a small business once labour is properly counted, and considerably more in larger organisations with formal procurement. The figure surprises people because the labour component is invisible until it is measured.
Should freight be in ordering cost?
Only the portion that does not vary with quantity. A flat delivery charge belongs in ordering cost; per-unit freight belongs in unit cost. Mixing them distorts EOQ in opposite directions.
How does this affect order size?
Directly, through EOQ. A higher ordering cost pushes toward larger, less frequent orders; a lower one toward smaller, more frequent ones. Automating purchasing lowers the cost and legitimately allows leaner ordering.