Product cost + freight + duty + taxes. The Landed Cost Calculator takes product cost (fob), freight, insurance, customs duty, import tax / igst / vat, clearance, port and broker fees, units in the shipment and returns landed cost per unit plus total landed cost, customs duty, import tax. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Online and retail margins are decided by the costs that are easy to forget: fees, shipping, returns, storage and advertising. Fill in every line, even with an estimate, before deciding what to sell and at what price. Use the worked example below to check the maths against your own figures.
How the Landed Cost Calculator works
Import tax is usually charged on the duty-paid value, so duty compounds into it. Divide by units to get the true cost of each item before pricing it.
Worked example
With the example values (product cost (fob) of $5,000, freight of $600, insurance of $50, customs duty of 10%, import tax / igst / vat of 18%, clearance, port and broker fees of $100, units in the shipment of 100), the landed cost per unit is $74.34; total landed cost $7,433.70, customs duty $565.00, import tax $1,118.70. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is landed cost per unit calculated?
landed cost = (product + freight + insurance) × (1 + duty) × (1 + tax) + fees.
Which figures do I need?
Product cost (fob), freight, insurance, customs duty, import tax / igst / vat, clearance, port and broker fees, units in the shipment. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Which fees should I include?
Every fee your platform or provider charges on a sale: commissions, payment processing, fulfilment, storage, advertising and the expected cost of returns. Fee schedules change, so check the current rate card.
