Landed cost calculator
Total cost per unit for imported goods — product, shipping, duty, insurance, broker, port handling, and inland freight.
Calculator logisticsLogic updated April 2026
This calculator builds the total landed cost of an import shipment by aggregating product cost, shipping, duty, insurance, broker fee, port handling, inland freight, and any other fees. It returns a per-unit cost and a markup percentage over the purchase price so procurement teams can compare suppliers on a like-for-like basis — the headline product price almost always understates true landed cost.
How this is calculated
Formula
totalProductCost = productCost × quantity ; dutyAmount = totalProductCost × dutyRate / 100 ; insuranceAmount = totalProductCost × insuranceRate / 100 ; landedCost = totalProductCost + shipping + duty + insurance + brokerFee + portHandling + inlandFreight + otherStep-by-step
- Multiply unit cost by quantity for total product cost (the FOB or pre-shipping cost basis)
- Apply duty rate to total product cost (most jurisdictions use a CIF or transaction-value basis — confirm yours)
- Apply insurance rate to total product cost
- Add fixed costs: shipping, broker fee, port handling, inland freight to final destination, and any 'other' line items
- Sum everything for total landed cost
- Divide by quantity for landed cost per unit, and compute the markup percentage versus the headline product cost
- Rounding mode
- ROUND_HALF_UP
- Precision
- 20-digit internal precision (Decimal.js), rounded to 2 decimal places for display
- Logic last reviewed
Assumptions & limitations
What this calculator assumes
- Duty is computed as a percentage of product cost — actual customs valuation may use CIF, FOB, or transaction value depending on jurisdiction
- Insurance is computed as a percentage of product cost, not CIF value
- All fees and charges are allocated pro-rata across the shipment quantity
- Taxes such as VAT, GST, or sales tax are NOT included — those are recoverable or separately accounted for
- Currency exchange losses are NOT included — enter values in a single currency
What this calculator doesn’t account for
- Doesn't model jurisdiction-specific customs valuation rules (CIF vs FOB vs transaction value)
- Doesn't include trade-agreement preferential rates that may reduce duty
- Doesn't model anti-dumping duties or special protective tariffs
- Doesn't include warehousing or storage costs at port of entry
- Doesn't factor in payment terms (LC fees, supplier credit costs)
Worked example
A business imports 5,000 units at $20 each from an overseas supplier. Shipping is $4,000, duty is 8%, insurance is 1.5%, broker fee is $500, port handling $800, inland freight $1,200.
| Input | Value |
|---|---|
| Quantity / unit cost | 5,000 / $20 |
| Shipping | $4,000 |
| Duty / insurance | 8% / 1.5% |
| Broker / port / inland | $500 / $800 / $1,200 |
Total product cost: $100,000 — Total landed cost: $116,000 — Per-unit landed: $23.20 — Markup over FOB: 16%
Duty on $100k at 8% = $8,000. Insurance on $100k at 1.5% = $1,500. Fixed costs total $6,500. Total landed = $100,000 + $4,000 + $8,000 + $1,500 + $500 + $800 + $1,200 = $116,000. Per unit: $23.20 vs headline $20 = 16% markup. Procurement teams who price off the supplier invoice instead of landed cost typically under-margin by 10–25% — landed cost is the figure that should drive your pricing strategy.
Frequently asked questions
What is landed cost?
The total cost of getting a product from supplier to your warehouse, ready to be sold or used. It includes the supplier invoice, plus all shipping, duty, insurance, fees, and inland freight. Landed cost is the figure to use for pricing decisions, supplier comparisons, and gross margin calculations — the supplier's quoted price is only a fraction of the real cost.
What costs are included in landed cost?
Eight standard categories: product cost, ocean/air freight to port, customs duty, marine insurance, customs broker fee, port handling charges, inland freight to your warehouse, and miscellaneous fees (port security, fuel surcharges, demurrage). Taxes that you can recover (VAT, GST) are typically excluded because they don't represent a real cost — they pass through to the customer.
How do duties and tariffs affect landed cost?
Duties are typically the most variable component — anywhere from 0% to 50%+ depending on product category and jurisdiction. A 5% duty on a $100,000 shipment is $5,000 — meaningful but absorbable. A 25% duty (e.g. on certain high-protection categories) materially changes whether the import makes commercial sense. Always check the duty rate by HS code before committing to a supplier.
Why is landed cost important for pricing?
Because you can't make a margin if you don't know your real cost. A retailer pricing at 2× supplier invoice on a product with 30% landed cost markup is selling at 1.54× actual cost — leaving thin margin even before discounts. Pricing off landed cost ensures every line item carries your target margin in real terms.
Can I reduce landed cost by changing suppliers?
Yes — sometimes dramatically. A supplier offering 10% lower headline price in a country with lower duty rates can produce 15–20% lower landed cost. Conversely, a cheaper supplier behind a high-duty barrier can be more expensive than a costlier nearby alternative. Always compare suppliers on landed cost, not invoice price, especially when crossing major trade-agreement borders.
Embed this calculator
Add this calculator to your website. Free to use with attribution.
The calculator will resize to fit your content area. Please keep the attribution link visible — replace YOUR_SITE with your domain so we can attribute traffic correctly.