Calculate the minimum order quantity required to break even based on your unit economics, fixed setup costs and target margin. Built for sourcing, manufacturing and supplier negotiations.
All values in USD. Adjust based on your supplier quote.
Common questions about MOQ and unit economics.
MOQ (Minimum Order Quantity) is the smallest number of units a supplier will produce or ship in a single order. It determines your upfront capital commitment, per-unit cost, inventory risk and break-even point. A higher MOQ usually lowers the unit price but increases cash tied up in stock, while a lower MOQ reduces risk but raises per-unit cost.
MOQ is calculated by dividing total fixed costs (tooling, molds, setup, compliance) by the contribution margin per unit. Contribution margin equals target selling price minus variable cost per unit (manufacturing + shipping + duties + fees) minus target profit per unit. Formula: MOQ = Fixed Costs ÷ (Price − Variable Cost − Profit per Unit).
Negotiate a lower MOQ by offering a higher unit price for trial runs, committing to a longer-term contract with scheduled reorders, paying a setup surcharge instead of a volume commitment, consolidating SKUs or colors into one run, or starting with a paid sample batch before full production. Showing a clear unit economics breakdown builds credibility and unlocks supplier flexibility.