UtilityPilot

Landed cost

Calculate the true landed cost of your imported product

Combine the product cost, freight, insurance, customs duty, additional tariffs, import taxes and fees to calculate the total and per-unit cost of an imported shipment — the number you actually price against.

Who this is for

  • Ecommerce sellers setting a retail price
  • Importers comparing suppliers on true cost, not sticker price
  • Procurement teams building a landed-cost model
  • Founders checking whether a product is worth importing

What you need

  • Quantity and unit purchase price
  • International freight and insurance
  • The customs value basis and duty rate
  • Any additional tariff measure
  • Import VAT/GST rate and whether it is recoverable
  • Customs, broker and handling fees, plus domestic delivery if known

How it works

  1. 1

    Start from the purchase value

    Multiply unit price by quantity for the goods value — the base everything else is added to.

  2. 2

    Add the transport

    International freight and insurance move the goods to the border and, depending on valuation basis, form part of the customs value.

  3. 3

    Apply duty and tariff

    Duty and any additional tariff are charged on the customs value you choose (FOB or CIF).

  4. 4

    Add import tax and fees

    Import VAT/GST, customs processing, broker and handling fees are added. Recoverable tax is kept separate.

  5. 5

    Divide to per unit and check margin

    The total is divided by quantity for landed cost per unit, then compared to your selling price for the achieved or required margin.

Worked example

Hypothetical: 1,000 units at 4.50 each

All rates below are entered for illustration. Arithmetic uses the same deterministic engine as the calculator.

Goods value (1,000 × 4.50)
USD 4,500.00
Freight + insurance
USD 1,280.00
Duty (user-entered 10%)
USD 578.00
Import tax (user-entered 0%)
USD 0.00
Handling & broker fees
USD 250.00
Total landed cost
USD 6,608.00
Landed cost per unit
USD 6.61
Price needed for 45% margin
USD 12.01

Illustrative only. Confirm duty, tariff and tax rates for your HS code, origin and destination with the official authority before pricing.

Common mistakes

  • Confusing purchase cost with landed cost
  • Omitting freight and insurance from the total
  • Using the wrong customs-value basis
  • Ignoring tariff surcharges and additional measures
  • Counting recoverable tax as a permanent cost
  • Forgetting quantity when comparing suppliers
  • Comparing supplier prices without comparing landed cost
  • Calculating margin on purchase cost rather than landed cost

What UtilityPilot calculates

  • Total landed cost and landed cost per unit
  • Duty, additional tariff and non-recoverable tax
  • The effective duty rate on your goods value
  • The selling price required for a target margin

What you must verify

  • Current duty and import-tax rates for your line
  • Whether import tax is recoverable for you
  • Freight and insurance quotes for the actual shipment
  • Any broker, entry or handling fees your agent charges

Official sources to verify

UtilityPilot links to these authorities so you can confirm a figure at its source. It does not publish live tariff rates or reproduce these databases. Source list last updated 4 September 2026.

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