Landed Cost Calculator
Decide whether an imported order supports your selling price. Compare gross outlay, cost after confirmed tax recovery and the price needed for your target margin.
The supplier price is not the price you need to recover.
Would a selling price of 30 cover this imported order and a 35% gross margin? Try a worked buying decision, then replace the assumptions with your own figures.
Illustrative: 500 units, USD 8,000 goods, 1,200 freight, 150 insurance, 300 fees, 5% duty and 20% import tax. No additional tariff or other logistics costs. No tax recovery assumed.
From a trade question to a commercial decision.
Understand whether the deal works, what could change it and what remains unverified. UtilityPilot connects AI-guided questions to explicit assumptions, repeatable calculations and the next step in your sourcing, costing or pricing decision.
1. Frame the business problem
Start with your product and countries. Carry the available details into duty, costing and pricing.
2. Test the economics
Check the inputs and calculation breakdown. Separate a candidate code or illustrative rate from a verified input.
3. Build your decision brief
Compare tariff exposure, see the selling-price impact and copy a decision brief for your own workflow.
Planning support, not a customs ruling. UK general-rate lookup is beta; US/EU duty needs verified manual input. Check data coverage.
Prefer to describe the problem?
What this calculator does
The Landed Cost Calculator computes the true total cost of imported goods — from supplier invoice through to your warehouse shelf. It combines product cost, international freight, cargo insurance, customs duty, import VAT/GST, broker fees and destination handling into a single per-unit figure. It then calculates the minimum selling price needed to achieve your target gross margin.
The formula: Product Cost + Freight + Insurance + Duty + VAT/GST + Fees = Total Landed Cost
Using only the supplier price leaves out freight, duty and handling. Enter your actual costs to see how much they change the per-unit cost and required selling price.
Use this in your workflow
Use the Air Freight Chargeable Weight Calculator to confirm the air freight cost before entering it here. Then cross-check your sell price with the Margin Calculator. Browse all trade and import calculators.
Worked example: 500 units imported from China to the UK
Illustrative values only; enter your own verified duty and tax rates in the calculator above.
| Cost Component | Amount |
|---|---|
| Product cost (500 units × £14) | £7,000 |
| Sea freight (LCL) | £850 |
| Marine insurance (0.3%) | £24 |
| Customs duty (5% on CIF value) | £393.70 |
| Import VAT (20% on CIF + duty) | £1,653.54 gross tax; full recovery assumed |
| Customs broker fee | £120 |
| Port handling / delivery | £180 |
| Gross order outlay including import VAT | £10,221.24 |
| Economic cost after assumed full tax recovery | £8,567.70 |
| Landed cost per unit (÷ 500) | £17.14 |
| Min. sell price at 50% gross margin | £34.28 |
Interpretation: the product costs £14 ex-factory, but the true landed cost is £17.14 per unit after freight, duty and fees — 22% more than the factory price. Using the factory price as the cost base would overstate your margin by the same amount. If you target 50% gross margin, the minimum selling price is £34.28, not £28.00.
Limitations
Duty rates vary by product HS code, country of origin and destination — always confirm the correct rate with your customs broker. Enter the actual import-tax rate and select recovery only when independently confirmed for this transaction. The calculator separates gross outlay from economic cost after assumed recovery. Choose the applicable valuation model; customs valuation rules depend on the destination and transaction. Freight quotes fluctuate — use the latest rate from your forwarder. These figures are for planning purposes only and do not constitute customs, tax or financial advice.
Common mistakes when calculating landed cost
Using the factory price as the cost base for margin calculations
The most common error in import pricing. Using the ex-factory or FOB price as "cost" ignores freight, duty, and fees — which may materially change the unit cost. Always use the fully landed cost per unit as the basis for gross margin and minimum sell price calculations.
Including reclaimable import VAT as a landed cost
Registration alone does not establish recovery entitlement. Enter the actual tax rate, then use the separate recovery control only after confirming entitlement for this transaction. Keep gross tax in the outlay estimate even when it is excluded from economic cost.
Applying a single freight quote to all future shipments
Ocean and air freight rates fluctuate significantly — sometimes week to week. A landed cost model built on a quote from six months ago may be materially wrong. Use current quotes from your forwarder and build in a 10–15% freight buffer for forward pricing.
Omitting broker fees and port handling charges
Customs broker fees, port handling, container unloading (LCL deconsolidation), and delivery to warehouse are real costs that are easy to omit when building a quick estimate. These typically add £80–£250 per shipment and can be significant on small orders.
Not checking for preferential duty rates under trade agreements
Free trade agreements can reduce or eliminate import duty between certain country pairs. UK–Vietnam, EU–South Korea, and others have preferential rates. If your goods originate from a country with a trade agreement and meet the rules of origin requirements, you may qualify for a lower duty rate. Always check with your customs broker before assuming the standard MFN rate applies.
When to use this calculator
- →Planning pricing for imported products before placing a purchase order
- →Comparing landed costs from suppliers in different countries
- →Ensuring imported goods remain profitable after all import costs
- →Finding the minimum selling price to hit a target gross margin
Related calculators
Related guides
The full landed cost formula explained with worked examples, common mistakes, and low-value parcel scenarios.
How classification determines the duty rate — one of the largest variables in your landed cost.
Who pays freight, duty and delivery under FOB, CIF, DAP and DDP — and how that affects your cost base.
How shipping volume drives the freight component of landed cost.
Important note
Landed cost estimates are based on the values you enter. Actual costs depend on carrier rates, current duty rates for your HS code and origin, and destination-country charges that vary by port and volume. Always confirm duty rates with a licensed customs broker and obtain freight quotes from your forwarder before making purchasing decisions.
Last updated: July 2026