Find out what an imported product really costs once it reaches your warehouse. Enter the supplier price, quantity, freight, insurance, your duty rate and customs fees to get the total landed cost, the landed cost per unit and a selling price that hits your target margin.
Last updated:
Goods
$
Supplier price per unit (e.g. FOB or EXW price).
Shipping & insurance
$
Ocean, air or courier cost to the destination.
$
Duties, taxes & fees
%
From your tariff schedule for the product's HS code.
Product cost = unit price × quantity, as shown on the commercial invoice.
Duty = dutiable value × duty rate. The dutiable value is the product value (transaction value / FOB, used by the US) or the CIF value = product + freight + insurance (used by the EU, UK and many others).
Import VAT / GST is usually charged on CIF value + duty. Registered businesses normally reclaim it, so it only belongs in landed cost when it cannot be recovered.
Landed cost per unit = total landed cost ÷ quantity. Selling price at margin m = unit landed cost ÷ (1 − m).
Example: 1,000 units at $12.50 = $12,500. Add $1,800 freight, $150 insurance, 5% duty on the product value ($625), $350 broker fees and $400 other fees: the landed cost is $15,825, or $15.83 per unit, 26.6% above the supplier price. At a 40% margin the price is $15.825 ÷ 0.6 = $26.38.
FOB vs CIF duty: what changes
The same shipment pays different duty depending on the valuation basis. With the example above at a 5% duty rate:
Valuation basis
Dutiable value
Duty at 5%
Typical users
Product value (FOB / transaction value)
$12,500
$625.00
United States, Canada, Australia
CIF (product + freight + insurance)
$14,450
$722.50
European Union, United Kingdom, China, India
Always confirm the rules with your customs broker: valuation, preferential rates under trade agreements, anti-dumping duties and minimum thresholds can all change the final number.
Costs people forget
Origin charges (export clearance, terminal handling) if you buy EXW instead of FOB.
Destination terminal handling, chassis and demurrage or detention charges.
Government processing fees on the customs entry and harbor or port fees.
Inland trucking from the port to your warehouse, palletizing, labeling and inspections.
Currency conversion costs and bank fees on the supplier payment.
Frequently asked questions
What is landed cost?
Landed cost is the total cost of getting a product to your door or warehouse: the purchase price plus freight, insurance, customs duties, taxes that you cannot recover, brokerage and handling fees. Dividing it by the number of units gives the landed cost per unit, which is the real cost you should use for pricing and margin.
What is the landed cost formula?
Total landed cost = product cost + freight + insurance + customs duty + broker and customs fees + other fees (+ non-recoverable import taxes). Landed cost per unit = total landed cost ÷ quantity.
Is customs duty charged on FOB or CIF value?
It depends on the importing country. The United States generally assesses duty on the transaction value of the goods, which excludes international freight and insurance (close to FOB). The European Union, the UK and many other countries use the CIF value, which includes freight and insurance to the border. Choose the matching option so the duty is calculated on the right base.
Where do I find my duty rate?
Look up your product's HS code in the importing country's tariff schedule, for example the Harmonized Tariff Schedule of the United States or the EU TARIC database. Rates vary by product, origin country and trade agreements, so this calculator lets you enter the rate yourself rather than guessing it.
Should import VAT be part of landed cost?
Only if you cannot reclaim it. VAT-registered businesses in most countries recover import VAT as input tax, so it is a cash-flow item rather than a cost. If you are not registered or cannot recover it, tick the option to add it to the landed cost.
How is the suggested selling price calculated?
It uses the gross margin formula: price = landed cost per unit ÷ (1 − target margin). A 40% margin on a $15 landed cost gives $15 ÷ 0.6 = $25. Note that margin is a share of the selling price, which is different from markup on cost.
How do I split freight across different products in one shipment?
A common approach is to allocate shared freight by each product's share of the total value, weight or volume. Run the calculator per product with its allocated share of freight and fees to get each product's landed cost per unit.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.