Home / Free tools / Landed cost calculator
Free tool · for importers
Landed cost calculator
The factory price is only part of what a product costs you. Add freight, insurance, duty, import tax and the fees in between to see what each unit really costs once it reaches your warehouse.
The price you pay the supplier (usually FOB).
From your forwarder's quote.
Of goods plus freight. Ask your forwarder or insurer for the rate.
Look this up for your product's HS code.
Leave at 0 if you reclaim it.
Inland delivery, inspection, sourcing fees, testing.
Want a second opinion on this? Send us your result.
Want help bringing the factory price down?
Your sourcing team on the ground in India. We find and vet factories, develop samples, negotiate prices and inspect every order before you pay the balance. You get one accountable team in India.
Guide
What landed cost includes
Landed cost is everything you pay to get a product from the factory into your warehouse: the price you pay the supplier, international freight, insurance, customs duty, import tax, customs broker and port charges, delivery from the port and any sourcing or inspection fees.
Divide that total by the number of units and you have the number to price from. Pricing from the factory price alone is the most common reason a first import makes less money than expected.
Duty is charged on different values in different countries
Some countries charge duty on the value of the goods plus freight and insurance (CIF value). The UK and the EU work this way. Others charge it on the goods only (FOB value), as the USA does. Pick the right basis in the calculator, and check your product's duty rate with your customs authority or broker using its HS code.
Import VAT or GST is usually charged on the customs value plus the duty. Many VAT-registered businesses can reclaim it, so you can leave it out of your cost per unit if that applies to you.
How to use the result
Enter your selling price to see your margin per unit. If it's thinner than you'd like, look at the biggest bar in the breakdown first: it's usually the factory price or freight, and both can move with a better supplier, a larger order or a different shipping method.
Questions
Where do I find my duty rate?
Look up your product's HS code in your country's tariff tool (for example the UK Trade Tariff or the US Harmonized Tariff Schedule), or ask your customs broker. Rates depend on the product, the material and sometimes the country of origin.
Should I include import VAT?
Include it if you can't reclaim it. Most VAT-registered businesses in the UK and EU can, so for them it affects cash flow rather than cost.
Why does my freight change so much?
Sea freight rates move with the season and the market, and a part-container shipment (LCL) costs more per cubic metre than a full container. Ask your forwarder for a quote for each shipment and update the calculator.
More free tools
All free toolsHow many units to inspect, and how many defects to accept, for any order size.
Use it free Free toolContainer loading calculatorHow many cartons fit in a 20ft, 40ft or 40ft high cube container.
Use it free Free toolIncoterms helperAnswer four questions to find the Incoterm that fits how you want to ship.
Use it freeContact
Let's talk about your business.
Pick whatever suits you: a call, a form, an email or a WhatsApp message. You'll hear back within one working day.
Send us a message
Takes about a minute. Fields marked * are required.