Can you afford the supplier MOQ — and how long will it last?
Inputs
Results
Total MOQ cost
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% of available cash
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Days of cover
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Sell-through scenarios
Sell-through
Revenue
Profit
Cash Recovered
About this calculator
MOQ (Minimum Order Quantity) is one of the biggest cash-flow constraints in early-stage DTC. Suppliers — especially in apparel and consumer goods — require 500-5,000 unit minimums. Meeting MOQ on multiple SKUs simultaneously can deploy 30-60% of available cash on inventory before you\'ve sold a single unit.
This calculator does the math: MOQ × unit cost = total deployment. Compared to available cash, you can see whether the MOQ is feasible. Compared to daily sales velocity, you can see how many days of inventory you\'re committing to.
The danger zone is when MOQ commitment exceeds 25-30% of available cash AND days-of-cover exceed 180. That combination concentrates working capital in a single product that needs to sell or your cash runs out. Operators in that situation should split MOQ across suppliers, pay premium for smaller quantities, or skip the order until cash position improves.
The sell-through scenarios show what cash you recover at different velocities. At 100% sell-through over X months, you recover MOQ cost + profit. At 70%, you\'re still profitable but cash recovery is delayed. At 50%, you\'re likely working capital-constrained for months. Pair with the Inventory Investment and Inventory Cash Tied Up calculators.
Frequently asked questions
What's a typical MOQ?
Apparel: 300-1,000 per SKU/colorway. Beauty: 500-3,000. Electronics/consumer goods: 500-5,000+ depending on complexity. Custom packaging adds another tier — most packaging suppliers require 1,000-5,000 MOQs for branded boxes.
Should I always meet MOQ?
No. Sometimes the cash deployment is too high relative to validated demand. Better to: negotiate split MOQs across SKUs (1,000 total split 4 ways), use a sourcing agent who aggregates buyers, or stay with a higher-cost low-MOQ supplier until you've validated demand at scale.
How long should an MOQ last?
Ideally 60-180 days of inventory. Below 60 days: you're reordering too frequently, paying setup/freight overhead per cycle. Above 180 days: cash is sitting idle. The sweet spot depends on lead times — short lead times allow shorter cover; long lead times require longer.
When does MOQ break the business?
When MOQ commitment exceeds 25-30% of available cash. At that point, a single SKU misforecast wipes out working capital. Most failed DTC brands have this story — over-committed to MOQ on a product that didn't sell, ran out of cash before they could pivot.
How do I negotiate down MOQ?
Pay a premium per unit (10-25% above MOQ pricing) to get smaller quantities. Or commit to repeat orders in writing (often gets MOQ reduced). Or buy at the standard MOQ but split across multiple suppliers. Once you have proven demand, MOQs negotiate down quickly.