Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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MOQ Calculator

Calculate supplier MOQ cash requirement, months of cover, storage cost, cash shortfall, and overstock risk.

MOQ calculator

Decide whether a supplier minimum order quantity fits your cash, velocity, and inventory-cover target.

Supplier MOQ

Unit cost

Expected monthly sales

Storage per unit / month

Cash available

Target months of cover

Cash required

$18,000

Cash shortfall

$3,000

Months of cover

4.4 mo

Monthly storage cost

$240.00

Overstock cash

$5,850

If months of cover is far above your target, negotiate MOQ, split the PO, or delay the order. Cheap units are not cheap if they trap cash for months.

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About this tool

What this free tool calculates

Use this before accepting a supplier minimum order quantity. It shows whether the MOQ creates a cash or overstock problem.

How to use the result

The calculator multiplies MOQ by unit cost, compares it with cash available, estimates months of cover from sales velocity, and values excess stock.

If MOQ creates too much cover, negotiate a smaller PO, split shipments, or validate demand before tying up cash.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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