Landed cost calculator

Complete unit economics

Landed cost formula

Landed cost is the amount spent to buy goods and bring them to the place where they are ready for sale. The exact cost categories depend on the route, contract and destination, so this calculator uses amounts you enter rather than inventing a tariff or tax rate.

DHL and Freightos both describe landed cost as combining product, transport and import-related charges rather than treating the supplier invoice as the full cost. See DHL's landed-cost guide and Freightos' worked example.

Costs to collect

What belongs in a landed-cost calculation?

Start with the commercial invoice, freight quote, broker estimate and destination charges. Enter only costs attributable to this shipment and keep every amount in the same currency.

• Goods: supplier unit price multiplied by units purchased, including product-level charges included on the invoice.
• Before export: pickup, origin trucking, export handling or consolidation not already included in the supplier price.
• International movement: air, ocean, rail or road freight plus cargo insurance.
• At the border: duties, additional tariffs and non-recoverable import taxes supplied by your broker or official calculation.
• Clearance and arrival: customs brokerage, port or terminal handling, examinations and document fees.
• Ready for sale: domestic delivery, inspection, labeling, repacking or other shipment-level preparation.

Do not count a cost twice. If a freight quote already includes destination handling or delivery, leave the separate field at zero unless another invoice adds a distinct charge.

Tariffs and taxes

Why the calculator does not guess a duty rate

Duty depends on the product classification, origin, destination and any applicable trade program or additional tariff. In the United States, the Harmonized Tariff Schedule sets out tariff rates and statistical categories. Classification can require detailed facts about the product's material, use and construction.

Use a customs broker or the appropriate government tariff source to determine the amount, then enter that amount in the calculator. For US imports, the USITC Harmonized Tariff Schedule is the official rate schedule, while CBP's tips for new importers explain why origin, composition, use and valuation details matter.

This page allocates a duty or tax amount you already estimated. It is not a customs declaration, tariff-classification service or guarantee of what an authority will assess.

Sellable quantity

Allocate costs across units you can actually sell

A shipment of 500 units does not produce 500 revenue-generating units if some are damaged, rejected during inspection, used as samples or otherwise unavailable for sale. Enter the expected sellable quantity so the complete shipment cost is spread over the units that must recover it.

If all 500 units are sellable, the default example produces a total landed cost of $7,850 and a landed cost of $15.70 per unit. The supplier price was $12, so freight, border and preparation costs add $3.70 per unit.

If only 475 units are sellable, the same $7,850 shipment would cost about $16.53 per sellable unit. That is why dividing only by the purchase quantity can overstate margin.

Pricing check

From landed cost to a target selling price

The pricing section compares the selling price with landed cost per sellable unit. It calculates gross profit before marketplace fees, payment processing, advertising, returns, fixed overhead and income tax.

The target selling price uses the margin formula: landed unit cost divided by one minus the target margin. With a $15.70 landed cost and 30% target gross margin, the price is about $22.43 before any selling-channel costs.

If you sell through Etsy, eBay or another marketplace, add channel fees after landed cost. Landed cost answers what inventory costs to reach you; marketplace profit answers what remains after the sale.

Documentation and review

Replace estimates when invoices arrive

Use the calculator first for planning and again after arrival. Reconcile the commercial invoice, freight invoice, customs entry, broker statement, port charges and domestic delivery invoice. Save the assumptions used for each SKU or shipment so later margin comparisons use the same scope.

• Confirm whether freight terms make the buyer or seller responsible for each stage.
• Separate recoverable taxes from permanent cost with your accountant.
• Allocate shared container or consolidated-shipment costs using a consistent method such as units, weight, volume or customs value.
• Keep currency conversion gains or losses consistent with your accounting policy.