Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Unit price at MOQ
$3.440
Unit price at your desired qty
$4.000
Excess units beyond near-term need
3,500
Annual holding cost on excess inventory
$2,649
Unit price savings by ordering to MOQ
$0.560
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How to use this
- 1Enter variable cost per unit ($).
- 2Enter supplier setup/tooling cost per run ($).
- 3Enter supplier's moq.
- 4Enter quantity you actually need soon.
- 5Enter annual inventory holding cost (% of value).
- 6Read your unit price at moq on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Suppliers set minimum order quantities to amortize setup costs across enough units to make a run worthwhile, and unit price usually drops as order quantity rises because that fixed setup cost gets spread thinner. This calculator lets you compare two order quantities (like a supplier's stated MOQ versus a lower quantity you'd prefer, or a higher quantity that unlocks a price break) and see the real trade-off: lower per-unit price at higher volume versus more cash tied up in inventory and slower turnover. It estimates the unit price at each quantity using a simple setup-cost-amortization model, then reports total order cost, cost per unit, and how many extra units of working capital you'd be carrying if you order to the higher MOQ instead of your actual near-term need.
Worked example
Using the values the calculator loads with:
Inputs
- Variable cost per unit: 3.2 $
- Supplier setup/tooling cost per run: 1200 $
- Supplier's MOQ: 5000
- Quantity you actually need soon: 1500
- Annual inventory holding cost: 22 % of value
Results
- Unit price at MOQ: $3.44
- Unit price at your desired qty: $4.00
- Excess units beyond near-term need: 3,500
- Annual holding cost on excess inventory: $2,649
- Unit price savings by ordering to MOQ: $0.56
What each field means
Inputs
- Variable cost per unit ($)
- The variable cost per unit used in the calculation, measured in $. Starts at 3.2 $ so you have a working example on load.
- Supplier setup/tooling cost per run ($)
- The supplier setup/tooling cost per run used in the calculation, measured in $. Starts at 1200 $ so you have a working example on load.
- Supplier's MOQ
- The supplier's moq used in the calculation. Starts at 5000 so you have a working example on load.
- Quantity you actually need soon
- The quantity you actually need soon used in the calculation. Starts at 1500 so you have a working example on load.
- Annual inventory holding cost (% of value)
- The annual inventory holding cost used in the calculation, measured in % of value. Starts at 22 % of value so you have a working example on load. Accepted range: 0–60 % of value.
Results
- Unit price at MOQ
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Unit price at your desired qty
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Excess units beyond near-term need
- Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual holding cost on excess inventory
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Unit price savings by ordering to MOQ
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Is it always worth ordering the full MOQ to get the lower price?
Not necessarily — compare the per-unit savings times your near-term need against the annual holding cost of the excess inventory. If holding cost eats more than the savings, you're better off negotiating a smaller run at a modest price premium or finding a supplier with a lower MOQ.
What holding cost percentage should I use?
20-30% of inventory value per year is a common industry rule of thumb, covering capital cost, warehousing, insurance, obsolescence risk, and shrinkage. Businesses with high capital costs or fast-moving/perishable inventory should use a higher figure; stable, non-perishable parts can use a lower one.
How do I negotiate MOQ down with a supplier?
Offer to pay a portion of the setup/tooling cost upfront as a separate line item rather than having it baked into unit price, propose a blanket purchase order with scheduled releases (so the supplier still gets a big total commitment, just delivered in smaller batches), or ask what quantity gets you 80% of the price break instead of 100%.
Does this model apply to injection molding or only general manufacturing?
It applies broadly to any process with a real setup cost per run — molding, stamping, PCB fabrication, screen printing, casting. The setup cost input should reflect your specific supplier's actual tooling/changeover cost for the item in question.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). MOQ Negotiation Impact Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/moq-negotiation-impact
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/moq-negotiation-impact" target="_blank" rel="noopener">MOQ Negotiation Impact Calculator — RevenueLab</a> (2026).</p>
Source: [MOQ Negotiation Impact Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/moq-negotiation-impact) (2026).