Landed Cost Calculator – True Import Cost per Unit

Add up everything it takes to get a product to your door — goods, freight, insurance, customs duty, import VAT or sales tax and other fees — and see the real cost per unit.

Costs to get the goods to the border

Duties, taxes and fees

Landed cost per unit
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Total landed cost
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Uplift on product cost
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Cost lineTotalPer unit

Download the Excel version

An Excel landed-cost workbook with multiple SKUs, cost allocation by value, weight or volume, and margin pricing. Coming soon.

What is landed cost?

Landed cost is the total cost of a product once it has arrived at your warehouse: the purchase price plus every cost of moving it and bringing it through customs. Pricing from the supplier’s unit price alone is one of the most common reasons importers lose margin — freight, duty and fees can easily add 15–40%.

How the calculation works

Insurance = (goods + freight) × insurance % (or a fixed amount) Customs value = goods + freight + insurance (CIF basis) = goods (FOB basis) Duty = customs value × duty rate Tax base = customs value + duty (+ fees, if ticked) Import VAT/tax = tax base × tax rate Landed cost = goods + freight + insurance + duty + fees (+ VAT if not recoverable) Per unit = landed cost ÷ units

The duty basis matters. The EU, UK and most countries charge duty on the CIF value (including freight and insurance to the border). The United States, Canada and Australia generally use the FOB or transaction value, which excludes international freight. Import VAT in the EU and UK is charged on the customs value plus duty, and EU rules also add incidental costs up to the first destination — tick “include other fees” to model that.

Worked example

1,000 units bought for 10,000, with 1,500 freight, insurance at 0.5%, 5% duty on CIF, 20% import VAT and 300 of brokerage and port fees:

  • Insurance: 0.5% × 11,500 = 57.50
  • Customs value (CIF): 10,000 + 1,500 + 57.50 = 11,557.50
  • Duty: 5% × 11,557.50 = 577.88
  • VAT: 20% × (11,557.50 + 577.88) = 2,427.08
  • Landed cost: 10,000 + 1,500 + 57.50 + 577.88 + 300 + 2,427.08 = 14,862.45, or 14.86 per unit

If your business is VAT-registered and can reclaim import VAT, tick “VAT is recoverable”: the landed cost drops to 12,435.38 (12.44 per unit), although you still need the cash to pay the VAT at import.

Where to find your duty rate

Duty depends on the product’s HS code, its origin and any trade agreement. Look it up in the official tariff of the importing country (for example the EU TARIC database, the UK Trade Tariff or the US Harmonized Tariff Schedule), or ask your customs broker. Additional duties such as anti-dumping or special tariffs can apply on top of the standard rate.

Frequently asked questions

What costs should be included in landed cost?

The product price, international freight, insurance, customs duty, any import taxes you cannot recover, customs brokerage, port and terminal charges, inland delivery to your warehouse, and other fees such as inspections or bank charges.

Is duty charged on CIF or FOB value?

The EU, UK, China and most other countries use the CIF value (goods plus freight and insurance to the border). The USA, Canada and Australia generally use the FOB or transaction value. Check the importing country’s rules.

Should VAT be included in landed cost?

If you are VAT-registered and can reclaim import VAT, it is a cash-flow cost rather than a true cost, so it is usually excluded. If you cannot reclaim it, include it.

How is insurance usually calculated?

Cargo insurance is often quoted as a percentage of the insured value, commonly CIF value plus 10%. This calculator applies your percentage to goods plus freight; enter a fixed amount if you have an actual premium.

How do I allocate freight across different products?

Common methods are by value, weight or volume. This calculator handles one product line at a time; for mixed shipments, allocate freight and fees to each line first, then run each separately.