Landed Cost Calculator

Calculate the true landed cost per unit of imported goods including freight, duty, insurance, customs fees, and handling — the number your pricing should actually be based on.

🚢 Ecommerce📐 Landed cost = (goods + freight + duty + insurance + fees) / units💼 Business

Unit cost from supplier

Number of units

Freight cost (total)

Insurance (total)

Duty rate (%)

Customs and brokerage fees (total)

Inland handling and delivery (total)

Please enter valid values.

Formula & Reference

Variable	Symbol	Formula	Units
Landed Cost Calculator	—	Landed cost = (goods + freight + duty + insurance + fees) / units	currency per unit

Step-by-Step Examples

Example 1

Standard Import

1,000 units at 12.50, freight 1,800, insurance 150, duty 6.5%, customs 350, handling 400.

Goods = 12,500
Dutiable value (CIF) = 12,500 + 1,800 + 150 = 14,450
Duty = 14,450 × 6.5% = 939.25
Total = 12,500 + 1,800 + 150 + 939.25 + 350 + 400 = 16,139.25
Per unit = 16.14

✓ 16.14 per unit — 29.1% uplift

Example 2

Low-Value High-Freight

500 units at 3.00, freight 2,200, duty 4%, customs 300.

Goods = 1,500
Dutiable = 1,500 + 2,200 = 3,700, duty = 148
Total = 1,500 + 2,200 + 148 + 300 = 4,148
Per unit = 8.30 — nearly triple the supplier price

✓ 8.30 per unit — 177% uplift

Example 3

High-Value Low-Freight

200 units at 180.00, freight 900, duty 2.5%, customs 400.

Goods = 36,000
Dutiable = 36,900, duty = 922.50
Total = 36,000 + 900 + 922.50 + 400 = 38,222.50
Per unit = 191.11 — only 6.2% uplift

✓ 191.11 per unit — 6.2% uplift

Real-World Applications

💲

Pricing Foundation

Pricing off supplier cost rather than landed cost is one of the most common ways importers accidentally sell at a loss.

🌍

Supplier Comparison

A cheaper supplier further away can easily be more expensive landed — only the full calculation reveals this.

📦

Order Sizing

Fixed costs like customs clearance spread across more units, so landed cost per unit falls with order size.

📊

Margin Accuracy

Gross margin calculated on supplier cost rather than landed cost overstates profitability, sometimes dramatically.

Common Mistakes to Avoid

⚠️

Pricing from the supplier invoice alone

As the second example shows, freight and fees can nearly triple the effective cost of low-value goods. Margins calculated on supplier price can be entirely illusory.

⚠️

Applying duty to the goods value only

Most customs regimes assess duty on the CIF value — cost, insurance, and freight — not the goods value alone, which understates duty owed.

⚠️

Ignoring currency movement

Goods paid for in a foreign currency at order time may cost meaningfully more by the time payment settles. Landed cost should reflect the actual rate paid.

Frequently Asked Questions

What is landed cost? ▾

The total cost of getting a product to your warehouse — supplier price plus freight, insurance, duty, customs fees, and inland handling — divided by units.

How is import duty calculated? ▾

Typically as a percentage of the CIF value, meaning cost of goods plus insurance plus freight, though the exact basis varies by country and tariff code.

Why does landed cost matter for pricing? ▾

Because it is your actual cost. Margin calculated on supplier price ignores everything in between and can turn an apparently profitable product into a loss-maker.

Does order quantity affect landed cost per unit? ▾

Yes. Fixed costs such as customs clearance and brokerage spread over more units, so per-unit landed cost typically falls as order size rises.

What else should be included? ▾

Depending on the situation: currency conversion fees, port storage, inspection costs, tariffs beyond standard duty, and any required certification or compliance testing.