Landed Cost Calculator
Calculate the true landed cost for imported goods: product cost, freight, insurance, customs duty, VAT/GST and broker fees — plus the minimum selling price to hit your target gross margin.
Enter product cost, freight, insurance, customs duty and VAT/GST to calculate total landed cost and landed cost per unit — plus the minimum selling price to hit your target margin.
Product & Shipping
Taxes & Duties
Fees & Currency
Set to 1 if all costs are in the same currency
Target Margin (optional)
Duty is on CIF value (product + freight + insurance). VAT is on CIF + duty. Confirm rates with your customs broker.
Formula
Landed Cost = Product + Freight + Insurance + (CIF × Duty%) + ((CIF + Duty) × VAT%) + Fees
CIF = Cost + Insurance + Freight. Customs duty is assessed on CIF in most WTO-member countries. VAT/GST is then applied to CIF + duty. The US uses FOB value (factory price only) instead. Always confirm the duty basis with your customs broker.
Worked Example
500 units · product $8,000 · freight $1,200 · insurance $150 · duty 5% · VAT 20% · fees $300:
CIF = $8,000 + $1,200 + $150 = $9,350
Duty = $9,350 × 5% = $467.50
VAT base = $9,350 + $467.50 = $9,817.50 · VAT = $9,817.50 × 20% = $1,963.50
Total = $9,350 + $467.50 + $1,963.50 + $300 = $12,081.00
Per unit = $12,081.00 ÷ 500 = $24.16
At 35% target margin: sell price = $24.16 ÷ (1 − 0.35) = $37.17 per unit.
Disclaimer
- Duty rates vary by HS code, origin country and destination. This calculator uses a flat rate — actual rates may differ.
- Some countries base VAT/GST on CIF only, not including duty. Confirm the correct base with your customs broker.
- Anti-dumping, excise and other levies are not included. This does not constitute customs or tax advice.
FAQ
Frequently Asked Questions
Use this in your workflow
Use the 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 Online Business Calculators.
Worked example: 500 units imported from China to the UK
A useful starting point before entering your own figures 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) | £394 |
| Import VAT (20% on CIF + duty) | £0 (VAT registered — reclaimable) |
| Customs broker fee | £120 |
| Port handling / delivery | £180 |
| Total landed cost | £8,568 |
| 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. VAT-registered businesses can typically reclaim import VAT; if reclaiming, set the VAT rate to 0% in this calculator. The US uses FOB value (not CIF) as the duty base; most other WTO members use CIF. 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.
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
Frequently asked questions
What is landed cost?
Landed cost is the total cost of a product by the time it reaches your warehouse or fulfilment centre. It includes the product purchase price, international freight, insurance, customs duty, import VAT/GST, customs broker fees, and port handling charges. It is the correct cost basis for calculating gross margin on imported goods.
How do I calculate landed cost per unit?
Add all costs: product cost + freight + insurance + customs duty + import VAT/GST + broker/handling fees, then divide by the number of units. Example: £8,568 total landed cost ÷ 500 units = £17.14 per unit. Enter each cost component above and click Calculate to get the per-unit figure instantly.
Does landed cost include VAT or GST?
It depends on your VAT registration status. VAT-registered businesses can typically reclaim import VAT as input tax, so it should not be included as a cost — set the VAT rate to 0%. Non-VAT-registered businesses cannot reclaim it, so it is a real cost to include. Always confirm with your accountant.
How do freight and duty affect selling price?
Freight and duty increase your landed cost per unit, which directly reduces your gross margin at any given selling price. Use the target margin field in this calculator to find the minimum selling price that covers all landed costs and still achieves your required margin percentage.
What is CIF value and how is duty calculated?
CIF stands for Cost, Insurance and Freight. Most countries calculate customs duty on the CIF value — the combined cost of goods, insurance and freight to the port of importation. The US uses FOB value (factory price only) instead. This calculator uses CIF as the duty base by default. Confirm the correct basis with your customs broker.
What is a typical customs duty rate?
Duty rates vary widely by product type (HS tariff code), country of origin, and destination country. Common rates range from 0% for many electronics and raw materials to 5%–15% for consumer goods and clothing, and up to 25%+ for some agricultural products. Check your country's tariff database or ask your customs broker.