Landed Cost Calculator

Enter product cost, freight, duty, other fees, and units to find the total and per-unit landed cost.

How it is calculated

All money fields are totals for the whole shipment, in one currency. The tool adds the extra costs, added = freight + duty + other fees, then total landed = product cost + added and per unit = total landed ÷ units. Duty is entered as an amount, not a percentage: work out duty yourself from the customs rate and the value it applies to, which differs by country, product code and trade agreement. Other fees can hold insurance, brokerage, port handling and similar charges. Units must be at least 1, and no field may be negative. Results are rounded to cents. Sales tax or VAT that you can reclaim is normally left out, and the tool does not convert currencies.

Worked example

An importer buys a batch of 500 units for 5,000, pays 600 freight, 450 customs duty and 150 for insurance and brokerage. Added costs: 600 + 450 + 150 = $1,200.00. Total landed cost: 5,000 + 1,200 = $6,200.00. Per unit: 6,200 ÷ 500 = $12.40, against an invoice price of $10.00 per unit. The extra 24% on top of the supplier price is what the selling price has to cover before any margin.

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Common mistakes

  • Typing the duty rate (such as 9) into the duty field. It expects the duty amount in money, so a rate gives a wildly low total.
  • Entering freight per unit while the other fields are totals, or the reverse. Every cost field must cover the whole shipment.
  • Calculating duty on the product price only when customs values goods including freight and insurance. Check which value your country applies the rate to.
  • Leaving out brokerage, port, inspection or storage fees. Small items add up to a noticeable part of the landed cost.
  • Dividing by units ordered rather than units actually received. Damaged or missing goods raise the real cost per sellable unit.

Sources

About this calculator

Landed cost is the true total price of getting imported goods to your door, adding product cost, international freight, customs duty, and other fees (insurance, handling, brokerage) on top of the invoice price, then dividing by the number of units to get a per-unit landed cost. This is often meaningfully higher than the supplier’s quoted price alone.

Importers, procurement teams, and ecommerce sellers sourcing from overseas use landed cost to price products correctly and compare suppliers on an apples-to-apples basis, since a cheaper unit price abroad can be offset by higher freight or duty. Add product cost, freight, duty and other fees, then divide by the units in the shipment, and you see both the total landed cost and the cost per unit on your shelf.

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Comments (1)

  • Editorial team

    The per-unit figure is the one to put next to a local supplier's quote. In the default shipment, 330 of extras on 1,000 of goods lifts the cost per unit from 10.00 to 13.30, about a third above the invoice price. Duty is a typed amount, so recompute it whenever freight or insurance changes the customs value. If you import regularly, which extra charge surprised you most on a past shipment?

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