What costs are included in landed cost?

Landed cost includes goods purchase price, international freight, cargo insurance, import duty, VAT/GST (if non-reclaimable), customs brokerage fees, port handling, inspection/testing and inland delivery — every cost to get goods to your warehouse.

Should I include VAT in landed cost?

Only include VAT if it is a true cost. VAT-registered businesses can typically reclaim import VAT as input tax, making it a cash flow item. For non-VAT-registered or exempt businesses, import VAT is a real cost.

How does this help with pricing decisions?

Setting sell price from goods cost alone ignores freight, duty and brokerage. Landed cost per unit gives the true floor price. Applying target gross margin to landed cost ensures all import costs are recovered.

How does Incoterms affect landed cost?

Incoterms determine which party pays each cost leg. Under DDP, the seller includes freight and duty in the price. Under EXW, the buyer pays everything. Regardless of terms, include every cost the buyer actually incurs.

Can I compare sourcing options?

Yes. Run the calculator for each sourcing option with the same unit count. A geographically closer supplier may have higher unit price but lower freight, yielding a lower landed cost per unit.

What is the difference from the existing Landed Cost Calculator?

This calculator focuses on a granular cost breakdown with percentage contribution of each element, making it more useful for cost reduction analysis, pricing decisions and supplier comparison. The Landed Cost Calculator is a broader import cost model.

Landed Cost per Unit Calculator

Enter all import costs — goods, freight, insurance, duty, VAT/GST and other charges — plus total units to calculate total landed cost and cost per unit. Shows a cost breakdown with the percentage contribution of each element.

Enter all import costs to calculate total landed cost and cost per unit. Includes goods, freight, insurance, duty, VAT/GST, and other charges. Useful for setting sell prices, calculating gross margin, and comparing sourcing options.

Per unit costingImport budgetingMargin planningSourcing comparison

Goods / Invoice Cost

International Freight

Cargo Insurance

Import Duty

VAT / GST / Import Tax

Enter 0 if VAT is reclaimable or not applicable

Other Import Costs

Broker fees, port charges, inspection, testing, etc.

Number of Units

Total units in the shipment

Formula

Total Landed Cost = Goods + Freight + Insurance + Duty + Taxes + Other | Cost per Unit = Total ÷ Units

Landed cost is the total cost of a product at the destination, including all costs incurred to get it there — purchase price, international freight, insurance, import duty, local taxes, customs brokerage fees, port handling, and any inland delivery. Cost per unit divides total landed cost by the number of units to give the true unit cost for pricing and margin decisions.

Worked Example

500 units at USD 20 goods cost each · Sea freight USD 1,500 · Insurance USD 100 · Duty USD 500 · Broker fees USD 200:

Goods: USD 10,000 (500 × USD 20)

Freight: USD 1,500 · Insurance: USD 100

Duty: USD 500 · Other: USD 200

Total landed = USD 12,300

Per unit = USD 12,300 ÷ 500 = USD 24.60

The landed cost of USD 24.60 per unit is 23% higher than the goods-only cost of USD 20.00. This difference must be accounted for in pricing and margin calculation. Setting sell price from goods cost alone would systematically understate all import costs.

Frequently Asked Questions

Landed cost includes every cost incurred to bring goods from the supplier to your warehouse: goods purchase price, international freight (sea, air, road or rail), cargo insurance, import duty, VAT or GST (if non-reclaimable), customs brokerage fees, port handling and terminal charges, fumigation, inspection, testing, inland delivery, and any warehousing or demurrage charges. The goal is to capture the total cost per unit available for sale.

Incoterms determine which party (buyer or seller) is responsible for each cost leg. Under EXW, the buyer pays all freight and origin costs. Under DDP, the seller includes delivery and duty in the price. For landed cost calculation, what matters is identifying every cost the buyer actually incurs, regardless of how costs are packaged in the price. Use the Incoterms Cost Split Calculator to map responsibility.

Use this in your workflow

Get duty from the Import Duty Calculator, add VAT with the Duties and Taxes Calculator, then enter all costs here for per-unit landed cost. Use results in the Margin Calculator to set sell price. Browse all Online Business Calculators.

When to use this calculator

→Setting sell price from true landed cost rather than goods cost alone
→Comparing sourcing options where freight mode, origin or terms differ
→Identifying which cost element (freight, duty, brokerage) is the largest reduction target
→Briefing finance or management on total import cost structure per product line

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

Import Duty CalculatorCalculate the import duty amount from customs value and rate Customs Value CalculatorCompute CIF customs value for duty calculation Duties and Taxes Estimate CalculatorAdd VAT/GST to duty for total import tax estimate Margin CalculatorSet target sell price from landed cost per unit