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.
Frequently Asked Questions
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
Without this calculation, importers who use the supplier’s ex-factory price as their cost base overstate gross margin by 15–35% — the typical uplift that freight, duty and handling add to the unit cost.
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.
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 typically add 15–35% to 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
VAT-registered importers can reclaim import VAT as input tax on their next VAT return. Including it as a cost overstates landed cost and understates margin. If you are VAT registered, set the VAT rate to 0% in this calculator — it is a cash flow timing issue, not a real 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
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.
HS Lookup Beta — Tariff Provider Coverage
The HS Code Duty Calculator includes Lookup Beta, which assists with duty rate lookups for supported markets. Support levels below. All markets support manual rate entry as fallback.
| Market | Support Mode | Duty | VAT/GST | Special Duty | Source | Confidence | Reviewed | Fallback |
|---|---|---|---|---|---|---|---|---|
| UK | Automated beta | API lookup | 20% auto | Partial | GOV.UK Trade Tariff API | High | 2026-06-26 | Yes |
| EU | Source-assisted beta | Source-assisted | Member-state VAT | AD/CVD/safeguard | EU TARIC | Medium | 2026-06-26 | Yes |
| US | Dataset-assisted beta | Base HTS only | No federal VAT | 301/Ch99/AD-CVD | USITC HTS | Low-Medium | 2026-06-26 | Yes |
| Singapore | Rule-assisted | Dutiable categories | GST 9% auto | Dutiable goods | Singapore Customs | High | 2026-06-26 | Yes |
| UAE | Source-assisted | Manual fallback | VAT 5% auto | Exemptions warning | UAE Customs | Low | 2026-06-26 | Yes |
| Saudi Arabia | Source-assisted | Manual fallback | VAT 15% auto | Exemptions warning | ZATCA | Low | 2026-06-26 | Yes |
| Australia | Source-assisted | Manual fallback | GST 10% auto | FTA/origin warning | ABF / ATO | Low | 2026-06-26 | Yes |
| Canada | Source-assisted | Manual fallback | GST/HST/PST | CPTPP/CUSMA | CBSA / CARM | Low | 2026-06-26 | Yes |
| Japan | Source-assisted | Manual fallback | 10%/8% | RCEP/EPA | Japan Customs | Low | 2026-06-26 | Yes |
| South Korea | Source-assisted | Manual fallback | VAT 10% auto | FTA/excise | Korea Customs | Low | 2026-06-26 | Yes |
What this means
UtilityPilot combines automated beta lookups, dataset-assisted checks, rule-assisted tax logic and source-assisted manual fallback for planning landed cost before shipment. It is not a customs ruling and does not replace official customs classification or broker advice. Always verify duty rates with a licensed customs broker.
Broker verification required
Duty rates change, trade-defence measures are company-specific, and preferential rates require valid proof of origin. Use these estimates for budgeting only. Official duty is determined by the relevant customs authority.
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