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Minimum Order Quantity Calculator

Find the minimum order quantity that keeps every order profitable.

Model fixed versus variable costs, compare profit and margin targets, and pressure-test minimum order value thresholds without spreadsheets.

Updated March 9, 2025
David Mansaray
Target

Profit mode uses currency; margin mode expects a percent (0–80%).

Pro tips for better MOQ

  • Align MOQ with case packs

    Round your MOQ up to the nearest case or pallet multiple so production and warehouse teams do not need to break packs.

  • Offer tiered MOQ by buyer type

    Give distributors higher MOQs than independent retailers, but keep your MOV constant to protect order value.

  • Review inputs quarterly

    Update unit costs and fixed expenses every quarter so your MOQ keeps pace with raw material or labor changes.

What to do if the calculator flags a warning

If price and cost are too close together, increase price, lower costs, or relax the margin target so the calculator can find a viable MOQ.

MOQ summary

Live

minimum order quantity calculator summary

MOQ (units)

Minimum units required to hit your target.

Order value at MOQ

MOQ × selling price.

Profit at MOQ

Gross profit after fixed + variable costs.

Break-even units

Units required to cover fixed costs.

Adjust costs or targets to see MOQ change instantly. Copy or print the snapshot for your team.

Minimum order value helper

units hit your MOV target. That’s compared to your MOQ.

Use MOV to protect order value when buyers ask for lower unit counts. It is common to round MOV units up to the nearest case pack.

Want a lower MOQ?

Required price per unit

Plug in the MOQ your buyers keep asking for to see what price protects your profit. Share the required price to steer negotiations.

Why MOQ matters

Minimum order quantity protects your margins when production runs or fulfillment time do not scale linearly. Without a guardrail, small orders chew up capacity and erode cash flow.

An effective MOQ balances three forces: how much it costs to set up or fulfill an order, the contribution margin per unit, and what your market will tolerate. The calculator keeps those inputs front-and-center so you can iterate quickly.

MOQ formulas

  • Profit target: MOQ = ceil((fixed cost + desired profit) ÷ (price – unit cost)).

  • Margin target: MOQ = ceil(fixed cost ÷ (price × (1 – margin) – unit cost)).

  • Both formulas rely on your contribution margin—the difference between selling price and unit cost. If that number is negative, you either need to raise prices or bring costs down before setting MOQ.

    When to revisit MOQ

  • Raw material or freight increases that change unit cost.

  • New buyer segments with different order habits.

  • Seasonal production runs where setup time shifts dramatically.

  • Document changes in the calculator and send yourself a summary so sales, finance, and ops see the same numbers.

    How to calculate MOQ

    Work through each step to choose a profitable minimum order quantity.

    1. Add up your fixed costs per production run

      Include setup labor, changeovers, paperwork, QA time, and any per-order freight charges that do not scale with units.

    2. Enter your true variable cost per unit

      Account for materials, packaging, labor, and fulfillment costs that increase with each unit produced.

    3. Choose a profit or margin target

      Decide how much profit you need per order, or what margin keeps finance comfortable. Toggle modes to compare results.

    4. Stress-test MOV and buyer requests

      Use MOV and the reverse calculator to see how different unit counts or price concessions impact profit.

    Minimum order quantity FAQs

    Answers to common questions sourcing and sales teams ask.

    What is the difference between MOQ and MOV?

    MOQ refers to the minimum number of units you will accept in a single order. MOV, or minimum order value, is the monetary amount a buyer must hit. A single MOQ can satisfy both if the unit price times MOQ exceeds the MOV target.

    How do I set a realistic MOQ margin target?

    Start by calculating your per-unit contribution margin (selling price minus unit cost) and fixed cost per order. Most suppliers pick a target profit per order first, then verify that the resulting margin meets their finance team’s hurdle rate.

    Why is the break-even quantity different from the MOQ?

    Break-even shows the units needed to cover fixed costs with no profit. MOQ layers in your profit or margin target. The difference between the two highlights how much cushion you are building into each order.

    How should I use MOQ during buyer negotiations?

    Turn on the reverse calculator to plug in your buyer’s desired unit count. If the required price feels unrealistic for their channel, share the numbers and shift the conversation to MOV or blended order schedules.

    Why does the chart disappear sometimes?

    If the selling price is at or below your unit cost we cannot plot profit, so the chart hides itself until you enter viable numbers. Raise your price or reduce costs to see the visual again.