About the Landed Cost Calculator
Landed cost is everything you pay to get a product from the supplier’s factory onto your shelf: the purchase price, international freight, cargo insurance, customs duties and additional tariffs, customs brokerage, and local charges such as port fees, drayage and inland delivery. This calculator adds them up for a whole shipment and divides by the number of units to give a true landed cost per unit.
It is built for importers, Amazon and e-commerce sellers, wholesalers and procurement teams comparing suppliers or setting a selling price. A product that looks cheap at the factory gate can lose its margin once freight and duty are added, so landed cost — not the supplier quote — is the right basis for pricing and margin decisions.
Duty rates depend on the product’s tariff classification and country of origin, so enter the rate from your country’s tariff schedule. Choose whether duty is charged on the product value only (FOB basis, used by the United States and Canada) or on cost plus insurance and freight (CIF basis, used by the EU, UK and most other countries).
With the default inputs, the landed cost per unit is $10.08. Change any value above to recalculate instantly.
How to use the landed cost calculator
- 1Enter the number of units and the supplier price per unit.
- 2Add the freight and insurance quotes for the shipment.
- 3Enter the duty rate for your tariff code and any additional tariff.
- 4Choose whether your country charges duty on FOB or CIF value.
- 5Add brokerage and local delivery fees, then read the landed cost per unit.
Formula and method
The product cost is the supplier price times the number of units. Duties are a percentage of the customs (dutiable) value V: on an FOB basis V is the product value only, as in the United States and Canada; on a CIF basis V also includes international freight and insurance, as in the European Union, the United Kingdom and most other countries. Any additional tariff is applied to the same value.
Freight, insurance, brokerage and local fees are added as shipment totals, and the sum is divided by the unit count. Import VAT or GST is left out because businesses normally reclaim it; add it to other fees if you cannot. Spreading shared costs by unit count assumes units are similar — for mixed shipments allocate by value or volume instead.
- P
- Supplier price per unit
- Q
- Units in the shipment
- F, I
- Freight and cargo insurance
- D
- Duties and additional tariffs
- B, O
- Brokerage and other port/delivery fees
- V
- Dutiable value (FOB or CIF)
Worked examples
1,000 units at $8 into the US (FOB basis)
Product cost is $8,000. Duty of 5% on the $8,000 FOB value is $400. Adding $1,200 freight, $80 insurance, $150 brokerage and $250 local fees gives $10,080, or $10.08 per unit — 26% above the supplier price.
Same order into the EU on a CIF basis with 12% duty
CIF value is $8,000 + $1,200 + $80 = $9,280. Duty at 12% is $1,113.60. The total landed cost is $10,793.60, or about $10.79 per unit.
500 units with a 25% additional tariff
On a $10,000 FOB value, 3.5% duty is $350 and the 25% additional tariff is $2,500, for $2,850 in duties. With freight, insurance and fees the shipment costs $14,275, or $28.55 per $20 unit.
Frequently asked questions
What is included in landed cost?+
Landed cost includes the product price, packaging, international freight, cargo insurance, customs duties and tariffs, brokerage and customs filing fees, port and terminal charges, and delivery to your warehouse. Some businesses also add currency conversion fees and inspection costs; US importers should include government fees such as the Merchandise Processing Fee and Harbor Maintenance Fee in the brokerage or other-fees line.
How do I calculate landed cost per unit?+
Add the product cost and every shipping, duty and fee charge for the shipment, then divide by the number of units. For example, $10,080 of total cost on 1,000 units is $10.08 landed per unit.
Is duty calculated on FOB or CIF value?+
It depends on the importing country. The United States and Canada assess duty on the transaction value excluding international freight and insurance (roughly FOB), while the EU, UK and most other countries use CIF value, which includes freight and insurance.
Should I include import VAT or GST in landed cost?+
Usually not, if you are VAT/GST registered, because it is recoverable as input tax. If you cannot reclaim it — for example as a consumer or unregistered business — add it to the other fees so it is included in your landed cost.
Why does landed cost matter for pricing?+
Margins calculated on the supplier price alone overstate profit. In the default example freight, duty and fees add 26% to an $8 supplier price, so prices, markups and supplier comparisons should be based on landed cost.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.