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.
What this calculation does—and does not include.
Included in this model
- Goods, international freight and insurance
- Duty/import tax inputs
- Brokerage, port, inspection and domestic freight
- Total shipment cost and landed cost per unit
Not automatically included
- HS-code classification advice
- A universal duty/tax quote
- Recoverable VAT/GST accounting treatment
- Demurrage or exceptional charges unless entered
User-supplied customs/tax rates — no universal preset
Reviewed 2026-08-23. Review dates describe the live model, not a guarantee that a third-party fee has not changed since.
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.
Questions this calculator is designed to answer.
landed cost calculator
Add supplier cost, international freight, duty, brokerage, port charges and domestic delivery, then allocate the total across received units.
See a 1,000-unit example →how to calculate landed cost
Start with goods value, add dutiable freight and insurance, then duty, import tax and destination charges before dividing by usable units.
Read the landed cost checklist →total landed cost calculator
Keep freight, customs and destination costs explicit so the supplier invoice is not mistaken for the final warehouse cost.
Explore landed cost sourcing →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.