Free Landed Cost Calculator
Calculate import shipment cost, customs duty, tax cash outlay and true cost per sellable product. Use advanced options and copy or download your results. Browser-based and no signup required.
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How to use the landed cost calculator
Calculate import shipment cost, customs duty, tax cash outlay and true cost per sellable product. No signup required.
- Enter shipment quantity, supplier price, inbound shipping, insurance and other import costs in the same currency.
- Enter your actual ad valorem duty and import tax rates and choose the valuation bases used for this shipment.
- Choose whether import tax is recoverable, enter unsellable units and set an optional target gross margin.
- Review cash outlay separately from economic cost and cost per sellable unit, then copy or download the report.
Who needs a landed cost figure
Landed cost is the full cost of getting goods to your door, ready to sell. Online sellers importing their first container, retailers comparing two suppliers, and makers buying parts from abroad all need it. Supplier price alone can make a product look profitable when it is not.
The calculator is useful before you place an order, when you want to test a quote with different duty or tax rates. It also helps after delivery, when you have the final freight invoice and broker fees and want the real cost per unit for pricing. This is general information, so confirm duty and tax treatment with a customs broker or tax adviser.
Worked example with real numbers
You import 500 units at 8.00 each, so merchandise cost is 4,000.00. Inbound shipping is 600.00, insurance is 40.00, and brokerage and handling come to 160.00. The duty rate is 5 percent on goods plus freight plus insurance, and import tax is 16 percent on goods plus freight plus insurance plus duty.
Duty is 4,640.00 times 5 percent, which is 232.00. The tax base is 4,640.00 plus 232.00, or 4,872.00, so import tax is 779.52. Total shipment cash outlay is 4,000 plus 600 plus 40 plus 232 plus 779.52 plus 160, which equals 5,811.52.
If you mark the tax as recoverable, the landed economic cost drops to 5,032.00. With 20 damaged units, 480 units are sellable, so landed cost per sellable unit is 10.48. For a 40 percent target gross margin, the price is 10.4833 divided by 0.60, or about 17.47.
How the calculation works
The tool follows a simple chain. Duty equals the chosen customs base times the duty rate. Import tax equals the chosen tax base times the tax rate. Landed economic cost equals goods plus freight plus insurance plus duty plus any nonrecoverable tax plus other charges. That total is divided by sellable units, not by units shipped.
Brokerage and other charges are added to the cost but are not part of the duty or tax base in this model. The target price uses the gross margin formula: cost divided by one minus the margin. A 40 percent margin is not the same as a 40 percent markup, which would give only 14.68 in the example.
The currency selector changes display only, so every amount must already be in one currency.
Common mistakes to avoid
Do not mix currencies. If your supplier quotes in one currency and the freight forwarder in another, convert them at the rate you actually paid before entering them. Also avoid using a duty rate you found for a similar product. The rate depends on the exact tariff classification and origin, which this tool does not determine.
Another frequent error is forgetting damaged or unsellable stock. Even a few lost units raise the cost of every remaining unit. Finally, do not treat recoverable tax as free. It still leaves your bank account at import, so plan cash flow using the cash outlay figure.
Useful tips and limitations
- Customs valuations and tax recovery rules depend on the shipment and jurisdiction; enter verified values.
- Include brokerage, handling and other allocated import charges. Recoverable tax is removed from economic cost but remains in cash outlay.
- Run the calculation twice, once with each duty valuation base, if you are unsure which one your import country uses, then confirm with your broker.
- Download the CSV for each shipment so you can compare real landed costs across suppliers over time.
Common questions
Why does landed cash outlay differ from economic product cost?
Recoverable import tax is paid upfront but can be excluded from economic cost if you are eligible to recover it. The calculator keeps that tax in total cash outlay.
Can this landed cost tool determine a customs tariff code?
No. It uses the duty rate and valuation base you enter. It does not determine tariff classification, country-specific exemptions or tax recovery eligibility.
How do damaged goods affect landed unit cost?
Unsellable units reduce the sellable quantity without reducing the shipment cost. The remaining sellable units therefore carry a higher allocated cost.
Is the target price based on margin or markup?
Margin. The price equals landed cost per sellable unit divided by one minus the target margin, so a 40 percent target divides cost by 0.60.
Are brokerage fees included in the duty base?
No. In this model, brokerage, handling and other charges are added to total cost but are not part of the duty or import tax base.
Can I enter more damaged units than I shipped?
No. At least one unit must remain sellable, so damaged units must be fewer than the shipment quantity.
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