Customs Duty Estimator
Estimate customs duties on imports by declared value and duty rate. Accounts for HS code-based duty rates, de minimis thresholds, and country-specific exemptions.
Shipping Landed Cost Calculator
Calculate the total landed cost per unit including product cost, freight, customs duty, import tax, insurance, and handling divided by quantity imported.
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Per Unit Landed Cost⧉
$15.76
Product only: $10.00/unit
Total Landed Cost⧉
$7,880.00
500 units
Cost Markup⧉
57.60%
Above product cost
Freight Share⧉
10.20%
Of total landed cost
Duty Share⧉
7.60%
Of total landed cost
Tax Share⧉
16.20%
Of total landed cost
Planning notes, formulas, and examples
About the Shipping Landed Cost Calculator
The Shipping Landed Cost Calculator computes the true per-unit cost of imported goods by adding up product cost, international freight, customs duty, import taxes, insurance, and handling fees, then dividing by the total quantity. Landed cost is the foundation of import pricing — without it, you cannot accurately set retail prices or calculate margins.
Many e-commerce sellers importing products from overseas underestimate their true cost per unit by only considering the product invoice price. In reality, freight, duties, taxes, and handling can add 25–60% on top of the product cost. Pricing products without accounting for landed cost leads to thin or negative margins.
It gives a complete per-unit cost breakdown that you can use to set retail prices, calculate margins, and compare sourcing options from different countries or suppliers. Use it when you need a per-unit import cost before setting retail price or approving a purchase order.
When This Page Helps
If you only look at the factory price, you miss freight, duty, tax, and handling. This page turns those line items into a real landed unit cost you can price from.
How to Use the Inputs
- Enter the total product cost (invoice value).
- Enter the international freight/shipping cost.
- Enter the customs duty amount.
- Enter the import tax (VAT/GST) amount.
- Enter insurance and handling costs.
- Enter the total quantity of units in the shipment.
- View the per-unit landed cost and cost breakdown.
Formula used
Total Landed Cost = Product Cost + Freight + Duty + Tax + Insurance + Handling
Per-Unit Landed Cost = Total Landed Cost / Quantity
Landed Cost Markup = (Total Landed − Product Cost) / Product Cost × 100Example Calculation
Result: Landed cost per unit: $15.76
A shipment of 500 units with $5,000 product cost, $800 freight, $600 duty, $1,280 VAT, $50 insurance, and $150 handling totals $7,880. Per unit: $7,880 / 500 = $15.76. The factory price is $10/unit, so the actual landed cost is 57.6% higher at $15.76/unit.
Tips & Best Practices
- Always calculate landed cost before setting your retail price to ensure adequate margins.
- Compare landed costs from different supplier countries — a higher factory price with lower duties may be cheaper.
- Larger order quantities reduce per-unit freight and handling costs.
- Factor in currency exchange rate fluctuations for non-USD purchases.
- Insurance is typically 0.5–1% of goods value but protects against total loss.
- Include domestic transportation from port to warehouse in your handling costs.
Components of Landed Cost
Product cost is the invoice price from your supplier. Freight includes ocean shipping, air freight, and/or trucking. Customs duty is determined by the product's HS code and origin country. Import tax (VAT/GST) is levied on the combined value of goods, duty, and shipping. Insurance protects against loss or damage in transit. Handling includes port fees, customs broker fees, and local transportation.
Landed Cost Impact on Pricing
A common e-commerce pricing pitfall is calculating margin on the factory price instead of landed cost. If your factory price is $10 and you sell for $30, you might think your margin is 67%. But if the landed cost is $16, your true margin is only 47%. This 20-point difference can mean the difference between profitability and loss.
Comparing Sourcing Options
Landed cost is the best metric for comparing suppliers from different countries. A $8/unit product from China with $3/unit freight and 15% duty ($1.65/unit) lands at $14.13. A $10/unit product from Mexico with $1/unit freight and 0% duty (under USMCA) lands at $11.55. The more expensive factory price actually delivers a lower landed cost.
Sources & Methodology
Last updated:
Frequently Asked Questions
Landed cost is the total cost of a product once it has arrived at your warehouse, including the factory price, shipping, duty, taxes, insurance, and any handling or inspection fees. It represents the true cost of goods available for sale.
Without knowing your true landed cost, you cannot set profitable prices. If you price based only on the factory cost and the actual landed cost is 40% higher, your margins may be much thinner than expected or even negative.
Landed cost includes: product purchase price, international freight, customs duties, import taxes (VAT/GST), insurance, customs brokerage, port handling, inspection fees, and domestic transportation to your warehouse. Some also include quality control costs.
Negotiate better factory prices with volume commitments, consolidate shipments to reduce per-unit freight, use free trade agreements to lower duty rates, optimize product classifications to find the lowest applicable duty rate, and use ocean freight instead of air freight. These changes usually reduce cost over time.
FOB (Free On Board) means you arrange and pay for shipping from the port of origin. CIF (Cost, Insurance, Freight) means the supplier arranges shipping to your port. FOB gives you more control over shipping costs and timing. Most experienced importers prefer FOB.
Recalculate whenever any component changes: supplier price, freight rates, duty rates, or exchange rates. At minimum, review quarterly. Major freight rate changes (like during peak season) can significantly impact landed cost.
More in this topic
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