Annual ordering cost
Business / FREE CALCULATOR
Estimate annual order-administration cost from order size.
Your answer starts here.
Enter your values and select Calculate to see the result and any available breakdown.
How to use this calculator
- Enter annual unit demand. Use the unit shown beside the field.
- Enter units per order. Use the unit shown beside the field.
- Enter cost per order. Use the unit shown beside the field.
- Select Calculate and review the result. Select Reset to restore the example inputs.
How the calculation works
Annual unit demand/Units per order*Cost per order
Worked example
Annual unit demand = 1200; Units per order = 100; Cost per order = 20. Result: 240 currency/year.
Understand your result
Estimate annual order-administration cost from order size. The result is expressed in currency/year.
Assumptions and limitations
Ignores minimum orders and variable transport charges. Results are rounded for display.
Questions about this tool
What does this tool calculate?
Estimate annual order-administration cost from order size.
What should I check before using the answer?
Ignores minimum orders and variable transport charges.
Related guides
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