MOQ Calculator
Check whether a supplier's minimum order quantity makes sense for your cash flow and sales.
- Cash needed upfront
- $4,000.00
- Units to sell to recover cash
- 267
- Profit if all units sell
- $11,000.00
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How to use the MOQ calculator
- Enter the supplier's minimum order quantity and your cost per unit.
- Enter your selling price and how many units you expect to sell each month.
- See the cash tied up, how many months stock will last, and how many units recover your investment.
MOQ formulas
Use landed cost per unit for a truer cash figure. Profit here is before fees, ads and overheads.
Example
A supplier's MOQ is 1,000 units at 4 each, so you need 4,000 upfront. At 15 each and 150 sales a month, stock lasts about 6.7 months. You recover your cash after 267 units, and profit is 11,000 if everything sells.
How to judge an MOQ
A common rule is that stock should sell through within 3 to 6 months. Longer than that ties up cash, adds storage costs and raises the risk of unsold stock, especially for seasonal or trend products.
How to negotiate a lower MOQ
Offer a higher unit price for a smaller first order, ask to mix colours or sizes within one MOQ, commit to repeat orders, or use a supplier's existing stock. Many suppliers are flexible for a trial order.
Frequently asked questions
What is MOQ?
Minimum order quantity: the smallest number of units a supplier will sell in one order.
How many months of stock is too much?
For most small brands, more than 6 months of stock is a warning sign unless the product never goes out of date.
Should I accept a higher MOQ for a lower price?
Only if you can sell through it in a reasonable time and the saving outweighs the extra cash and storage cost.
What does units to recover cash mean?
The number of units you must sell to earn back the money you spent on the order.
Does this include shipping and fees?
Not directly. Use your landed cost as the cost per unit to include them.
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