Landed Cost Calculator
Total the true cost of imported goods.
Results update as you type.
How it works
Landed cost is the true, all-in price of getting imported goods from a supplier to your warehouse, and it is almost always higher than the product price alone. This landed cost calculator adds the product cost, freight, applicable duty, and insurance to reveal the real cost per shipment, so you can price your goods for genuine profit rather than a margin that quietly evaporates once import fees arrive. Why this matters: many importers set retail prices against the factory quote and are shocked when freight, customs duty, and insurance erode their expected profit. By calculating landed cost up front, you see the complete picture before committing to an order, can compare suppliers on total cost rather than headline price, and can decide whether a shipment is worth importing at all. The calculation works because each element is a distinct, unavoidable cost of import, and duty in particular is charged as a percentage of the goods' value, which the calculator applies for you. Sourcing managers, ecommerce sellers, and small importers rely on landed cost to negotiate with suppliers, choose shipping methods, and set prices that survive contact with the real costs of international trade instead of collapsing under hidden fees.
landed cost = product + freight + (product × duty%) + insurance
Landed cost sums every expense of getting goods to your door: the product itself, the freight to move it, the duty owed on its value, and insurance against loss. Duty is the product cost multiplied by the duty rate percentage. The formula works because each component is a real, separate cash outflow, and adding them reveals the true unit cost you must cover before any margin, rather than the misleadingly low sticker price of the goods alone.
Source:Standard freight/logistics formula
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter product cost.
- 2
Adjust the options
Adjust freight cost, duty rate and insurance if they apply — sensible defaults are already set.
- 3
Read your result
Total landed cost updates instantly as you type — no button to press.
Frequently asked questions
What costs make up landed cost?
Landed cost combines the product's purchase price, the freight to transport it, the customs duty owed on its value, and insurance covering the goods in transit. This calculator adds all four into one total. Depending on your trade terms you may also face brokerage fees, port charges, and taxes; if those apply, fold them into the freight or insurance fields so the total reflects every real cost.
How is the duty amount calculated?
Duty is charged as a percentage of the goods' declared value, so the calculator multiplies your product cost by the duty rate you enter. For example, a 5 percent duty on 1,000 dollars of goods is 50 dollars. The correct rate depends on the product's tariff classification and country of origin, which you can look up in your country's tariff schedule or confirm with a customs broker.
Why should I calculate landed cost before pricing?
The factory price is only part of what you pay. Freight, duty, and insurance can add a significant percentage on top, and pricing against the product cost alone can turn an apparent profit into a loss. Calculating landed cost first gives you the true cost per unit, so you can set a retail price that covers every expense and still delivers the margin your business actually needs.
Does landed cost include shipping to the customer?
Typically no. Landed cost covers getting goods from the supplier to your warehouse or port of entry, including inbound freight, duty, and insurance. The cost of shipping an order onward to your end customer is a separate outbound expense you account for at the sales stage. Keeping inbound landed cost and outbound fulfilment separate gives a clearer view of both your product margins and your delivery costs.
How can I lower my landed cost?
You can reduce landed cost by negotiating better product or freight rates, consolidating shipments to spread fixed freight over more units, choosing slower but cheaper shipping modes, or sourcing from countries with lower duty rates or trade agreements. Correctly classifying goods to claim the lowest lawful tariff also helps. Model each option in this calculator to see which change delivers the biggest saving before you commit.