Landed Cost Calculator
Landed cost is the total cost of a product once it reaches your door, the unit price plus freight, insurance, customs duty, import tax and fees. Enter your numbers below to get the true cost per unit, with a full breakdown.
What landed cost includes
- Goods value
- The unit price multiplied by quantity, the ex-works value of the products themselves.
- Freight
- The cost of moving the goods from origin to destination: inland haulage, main carriage (sea, air or road) and any terminal charges.
- Insurance
- Cargo insurance covering loss or damage in transit.
- Customs duty
- Import tariff charged by the destination country, set by the product's HS code and origin. Usually calculated on the goods plus freight plus insurance (the CIF value).
- Taxes
- Import VAT, GST or sales tax, typically charged on the value including duty.
- Other fees
- Customs broker fees, port and handling charges, documentation and bank fees.
Frequently asked questions
What is landed cost?
Landed cost is the total cost of a product once it has arrived at the buyer's door, including the unit price, freight, insurance, customs duties, import taxes and handling fees. It is the true per-unit cost used to set prices and compare suppliers across countries.
What is included in landed cost?
Landed cost includes the goods value, freight (inland and main carriage), cargo insurance, customs duty, import VAT or sales tax, and other fees such as customs broker charges, port handling and documentation. It is everything you pay to get the goods from the supplier to your warehouse.
How is landed cost calculated?
Add the goods value, freight and insurance to get the customs value, apply the import duty rate to that value, then add import VAT or sales tax on the duty-inclusive amount, and finally add any broker and handling fees. Divide the total by the number of units for the landed cost per unit.
Is duty charged on the freight cost too?
In most countries customs duty is charged on the CIF value, which includes the goods, freight and insurance, so yes, freight is usually part of the dutiable value. Some countries use the FOB value (goods only). Check the rules for your destination.
Before you calculate, know your terms
Which of these costs you pay depends on your Incoterm. See the trade glossary for definitions, or browse verified suppliers by country.