Use the output as a threshold, not a forecast.
A supplier quote is only the beginning of product cost. Freight, duty, tax, brokerage, destination charges, inspection and local delivery can turn a seemingly high-margin item into an average one before the first sale.
The calculator makes the customs base explicit and returns both the shipment total and landed cost per unit. Save the assumptions with the quote and replace them with final invoices after arrival; that creates a reusable sourcing benchmark for the next purchase order.
Landed cost formula
Goods value equals unit price multiplied by units. The simplified customs base adds international freight, insurance and any other dutiable additions. Duty is calculated on that base, and import tax is calculated on the customs base plus duty.
Total landed cost adds goods, freight, duty, import tax, brokerage, port, domestic transport, inspection and other costs. Per-unit landed cost divides the total by received units.
A factory price of 8.00 can rise materially when 1,000 units share international freight, broker, destination and delivery charges. The uplift metric shows the percentage difference from the supplier quote.
Limitations to keep visible
- Customs valuation, tax recoverability, preferential tariff treatment and dutiable freight rules vary by jurisdiction and Incoterm.
- The model assumes every ordered unit is sellable. Add expected defects or divide by expected good units when quality loss is material.
- Confirm tariff classification and taxes with a qualified customs professional before import.
Frequently asked questions
Should recoverable import VAT be included?+
Include it for cash required at import, but consider excluding it from long-term product cost when it is fully recoverable under your tax treatment. Maintain both cash-flow and accounting views.
What about Incoterms?+
Enter only the costs you actually bear under the agreed Incoterm. For example, a delivered quote may already include freight that should not be counted twice.
How do I account for defective units?+
Use expected sellable units instead of ordered units, or add the expected write-off to other costs. This prevents defects from understating unit cost.