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

VariableSymbolFormulaUnits
Landed Cost CalculatorLanded cost = (goods + freight + duty + insurance + fees) / unitscurrency 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

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.

Related Business Calculators