# MOQ vs price break calculator: best order quantity

> Is the bigger order worth the discount? Compare supplier price breaks on total annual cost, including holding and ordering costs, to find your best order size.

Source: https://sourcesquid.co/tools/moq-vs-price/

Cost tool · free

# MOQ vs price breaks. Is the discount worth it?

The best order quantity under price breaks is the one with the lowest total annual cost: purchase price plus the cost of holding stock plus the cost of placing orders. Enter your supplier's price breaks, annual demand, order cost and holding cost, and this calculator compares every break and recommends the quantity to order.

  * __Free, no sign-up
  * __Runs in your browser
  * __Save as PDF or email it
  * __Embed it on your site

Best order quantity**0**

Total annual cost**$0**

Saving vs smallest break**$0**

Price| Order qty| Holding + ordering| Annual total  
---|---|---|---  
  
All-units discounts: the break price applies to the whole order. For each break, the order quantity is the economic order quantity at that price, moved up to the break's minimum or down to just below the next break if it falls outside. Annual total = demand × price + (quantity ÷ 2) × price × holding % + (demand ÷ quantity) × cost per order.

[Want better price breaks? Let us negotiate your next order](https://sourcesquid.co/start/?from=moq-vs-price)

**Saved.** Want a copy in your inbox or on WhatsApp as well? Optional.

How it works

## Three steps. One clear answer.

  1. 01

Enter each price break: the minimum order quantity and the unit price that goes with it.

  2. 02

Add your annual demand, the fixed cost of placing one order and your holding cost as a % of price per year.

  3. 03

Read the best order quantity, its total annual cost and how much it saves against the smallest break.

Method and sources

This is the quantity-discount economic order quantity model with all-units discounts. For each break at price P, **EOQ** = √(2 × D × S ÷ (h × P)), where D is annual demand, S the cost per order and h the holding cost rate. If the EOQ is below the break's minimum, the order quantity Q is raised to the minimum; if it is above the next break, Q is set just below that break. **Annual total** = D × P + (Q ÷ 2) × P × h + (D ÷ Q) × S. The break with the lowest annual total is recommended, and the saving is measured against the smallest break.

Results are estimates to support your decisions. For binding figures, ask our team or your customs broker.

Embed this tool

## Put this calculator on your site.

Free for blogs, forwarders, brokers and trade associations. Paste the code into any page: the calculator sizes itself to fit and runs in your visitor's browser. Please keep the credit link to SourceSquid.

  * No sign-up, no fee, no tracking cookies
  * Updates automatically when we improve the tool
  * Works on WordPress, Webflow, Squarespace and plain HTML

[Preview the embedded version](https://sourcesquid.co/embed/moq-vs-price/)

Embed code

<iframe src="https://sourcesquid.co/embed/moq-vs-price/" title="MOQ vs price break calculator by SourceSquid" data-ss-embed loading="lazy" style="width:100%;height:1100px;border:0;border-radius:16px;max-width:1100px"></iframe> <p style="font:14px/1.4 sans-serif;margin:8px 0 0"><a href="https://sourcesquid.co/tools/moq-vs-price/">MOQ vs price break calculator</a> by SourceSquid</p> <script>addEventListener("message",function(e){var d=e.data;if(e.origin!=="https://sourcesquid.co"||!d||d.ss!=="h")return;document.querySelectorAll("iframe[data-ss-embed]").forEach(function(f){if(f.contentWindow===e.source)f.style.height=Math.min(Math.max(+d.h|0,300),6000)+"px"})});</script>

Or link to it

<a href="https://sourcesquid.co/tools/moq-vs-price/">MOQ vs price break calculator</a> by SourceSquid

MOQ vs price questions

## Straight answers.

Anything else, ask us directly. A principal replies, not a bot.

[anirudh@sourcesquid.co](mailto:anirudh@sourcesquid.co)

### Should I always order at the lowest price break?

No. A bigger order lowers the unit price but raises the stock you hold, and holding stock costs money through capital, storage, insurance and obsolescence. The best break is the one with the lowest total annual cost.

### What holding cost percentage should I use?

Many companies use 20 to 30% of the unit price per year, covering the cost of capital, storage, insurance, handling and the risk of obsolescence. Use a higher figure for fashion, electronics or anything with a short shelf life.

### What counts as the cost per order?

Everything you pay once per order regardless of size: purchasing admin, pre-shipment inspection, fixed freight and clearance charges, and receiving. For imports from Asia this is often a few hundred dollars.

### How do I get the lower price without holding so much stock?

Ask the supplier for a blanket order: commit to the larger annual quantity at the lower price, with scheduled call-offs delivered in smaller batches. Many suppliers agree when the forecast is reliable.

### What is the difference between MOQ and EOQ?

MOQ is the smallest order a supplier will accept. EOQ is the order size that minimises your own holding and ordering costs. The right order quantity respects the MOQ and sits as close to your EOQ as the price breaks allow.

Use it with

## Tools that work well together.

[Planning**EOQ** Economic order quantity (EOQ) is the order size that minimises the combined yearly cost of placing orders and holding stock.](https://sourcesquid.co/tools/eoq/)[Planning**Safety stock** Safety stock is the extra stock held to cover swings in demand and in supplier lead time.](https://sourcesquid.co/tools/safety-stock/)[Cost**Quote compare** Comparing supplier quotes fairly means converting each one to the same basis, landed cost per unit at your door, because EXW, FOB, CIF and DDP prices include different costs.](https://sourcesquid.co/tools/quote-compare/)[Planning**Reorder point** The reorder point (ROP) is the stock level at which you place the next order so it arrives before you run out: average daily demand × lead time + safety stock.](https://sourcesquid.co/tools/reorder-point/)

From numbers to factories

## Turn this result into a free teardown.

Send one drawing, photo or quote. A principal returns how it is made, where it is made best and a realistic target price, free, in 48 hours.

[Get my free teardown](https://sourcesquid.co/start/?from=moq-vs-price)[Talk to a principal](https://sourcesquid.co/contact/)