Minimum Order Quantity (MOQ) Calculator
Calculate the break-even minimum order quantity for your product.
Enter setup costs, unit costs, and selling price to find the MOQ you need to profit.
The Minimum Order Quantity (MOQ) is the smallest number of units a supplier will sell in a single order. For buyers, calculating whether an MOQ is viable requires comparing it to your projected sales velocity and storage cost.
Supplier’s MOQ Rationale:
MOQ = Minimum Profitable Batch = Fixed Setup Cost / (Margin Per Unit)
Buyer’s Viable Order Analysis:
Months of Inventory = MOQ / Monthly Sales Volume
Working Capital Tied Up = MOQ × Unit Cost
Carrying Cost Per Month = Working Capital × Monthly Carrying Rate (typically 1.5–3%)
Break-Even Check:
Viable if: Monthly Margin Gain from Lower MOQ Price > Monthly Carrying Cost Increase
Worked Example:
- Supplier MOQ: 500 units at $4.50/unit
- Spot buy (no MOQ): $6.00/unit
- Your monthly sales: 80 units
- Months of inventory at MOQ: 500 / 80 = 6.25 months
Cost analysis:
- MOQ purchase cost: 500 × $4.50 = $2,250
- Monthly carrying cost (2%): $2,250 × 0.02 = $45/month
- Savings per unit vs spot: $6.00 − $4.50 = $1.50 × 80/month = $120/month
- Net benefit = $120 − $45 = $75/month savings → MOQ is viable
When MOQ is NOT viable: Monthly carrying cost exceeds per-unit savings — common for seasonal products, low-turnover niches, or products with short shelf life.
Negotiation Tip: Suppliers often accept a 20–30% lower MOQ if you commit to a blanket purchase order with scheduled releases over 3–6 months.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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