Landed cost calculator
Landed cost is what you really pay to get goods into your warehouse, and it is the figure your selling price should be built on.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter quantity, supplier price per unit, international freight, insurance, customs duty rate and clearance, local delivery and other fees.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
CIF = goods value + freight + insurance. Duty = CIF × duty rate. VAT = (CIF + duty) × VAT rate. Landed cost = CIF + duty + clearance fees (+ VAT if you cannot reclaim it).
Example
Inputs: Quantity = 500 units, Supplier price per unit = 12, International freight = 800, Insurance = 60, Customs duty rate = 5 %. Result: Landed cost per unit: 14.91; Total landed cost: 7,453.00; Customs duty: 343.00.
Limits and caveats
- The duty rate depends on the HS code and country of origin; confirm it with your customs authority.
- Duty is charged on CIF value as in the Gulf states; some countries charge it on FOB value.
- VAT here is on CIF plus duty; some countries add other charges to the VAT base.
Questions about this tool
Should import VAT be part of my cost?
Not if your business is VAT registered and reclaims input tax. Tick the option only when the VAT is a final cost to you.
What is the difference between CIF and FOB?
FOB is the price of goods loaded at the supplier port, while CIF adds freight and insurance to the destination port.
How do I use landed cost for pricing?
Build your margin on landed cost per unit, not on the supplier price, or you will earn less than you think.
