Landed Cost Calculator

Your supplier's price is only the start. Add every cost between their factory and your shelf to see what each unit really costs — and what you will really earn.

1 · Goods

Currency

Unit price (supplier)

Quantity (units)

2 · Freight & insurance

International freight (total)Leave 0 if your supplier quoted CIF/DAP.

Insurance rate (% of CIF×110%)

3 · Duties & taxes

Duty valuation basis

Duty rate %

Extra duties %Anti-dumping, additional tariffs

Import VAT / GST %

I can reclaim import VAT/GST (VAT-registered business)

4 · Local costs

Customs broker fee

Port / terminal / handling

Inland delivery

Other (inspection, bank, testing)

5 · Your price (optional)

Selling price per unit (excl. VAT)

Landed cost

—

Per unit: —

Per unit (excl. reclaimable VAT): —

Goods value—
Freight—
Insurance—
Customs value—
Duties—
Import VAT/GST—
Local fees—
Landed ÷ goods—

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How this landed cost calculator works

Landed cost is everything you pay to get goods from your supplier into your warehouse, ready to sell. The calculator builds it up in the same order customs and your accountant would:

Insurance = (Goods + Freight) × 110% × rate
Customs value = Goods (FOB basis) or Goods + Freight + Insurance (CIF basis)
Duty = Customs value × (duty % + extra duty %)
Import VAT/GST = (Goods + Freight + Insurance + Duties) × VAT %
Landed cost = Goods + Freight + Insurance + Duties + VAT + Local fees

Two settings change the answer more than most people expect. The valuation basis decides whether freight and insurance are taxed: the United States, Canada and Australia generally assess duty on the transaction (FOB-type) value, while the EU, UK, India and many other countries use CIF. And whether you can reclaim import VAT or GST decides if that tax is a real cost or just a cash-flow timing issue.

Worked example

With the default inputs — 2,000 units at 4.50, 1,450 freight, a 6.5% duty on a CIF basis and 20% VAT — the goods are 9,000 but the landed total is roughly 14,400. Because the VAT is reclaimable, the cost that matters for pricing is about 6.08 per unit, not 4.50 — 35% higher than the supplier price. At a selling price of 12, that still leaves a margin of about 49% — but notice how quickly it would shrink if freight doubled or an additional duty applied.

Allocating costs across several products

If one shipment holds several SKUs, allocate freight by volume (CBM) or weight, and duty by each item's own customs value and rate. Allocating everything by value can make bulky, cheap items look more profitable than they are.

What people forget

Bank transfer and currency conversion fees on the deposit and balance.
Pre-shipment inspection and lab testing for certifications.
Destination terminal handling and documentation fees under FOB/FCA terms.
Storage (demurrage/detention) if the container is not collected quickly.
Marketplace or fulfilment fees after the goods arrive.

Frequently asked questions

What is a good landed-cost multiplier?

It varies by product. Dense, valuable goods shipped by sea may land at 1.1–1.3× the supplier price; bulky, low-value goods or air freight can exceed 2×. Use the “Landed ÷ goods” line to compare suppliers and routes.

Where do I find my duty rate?

Classify the product with an HS code, then look it up in your country's official tariff. Start with our HS chapter finder and the official links on our resources page.

Should freight be included if my supplier quoted CIF?

No — a CIF price already includes main freight and insurance. Enter the CIF price as the goods value with freight at 0, but remember destination charges are still yours.

Is this calculator accurate enough to price my products?

It is designed for planning and supplier comparison. Before committing to retail prices, confirm the duty rate, VAT treatment and local fees with your customs broker and forwarder.