Product Landed Cost Calculator
Work out the true landed cost per unit of imported goods — product cost plus freight, import duty and insurance spread across the shipment.
How it works
Landed/unit = product cost + freight ÷ units + duty% × product cost + insurance ÷ units · Total = landed/unit × units
Landed cost is what a unit truly costs once it reaches your warehouse, not the supplier quote. Freight and insurance are shipment-level charges that must be divided across the units to see their per-piece impact, while import duty is charged as a percentage of the declared customs value. Pricing off the ex-works cost alone quietly understates your break-even and inflates your apparent margin.
Worked example
A 500-unit order at $5 each with $800 freight, 6% duty and $50 insurance: freight adds $1.60/unit, duty adds $0.30, insurance $0.10 — a landed cost of $7.00 per unit, or $3,500 for the shipment, 40% above the $5 ex-works price.
Frequently asked questions
Is duty charged on the product cost or the freight too?
It depends on the valuation basis your customs authority uses. Many countries assess duty on the CIF value (cost, insurance and freight), others on the FOB product value alone. This calculator applies duty to the product cost; if your regime uses CIF, add freight and insurance to the customs value first.
Why divide freight across units instead of adding it once?
Freight is a lump sum for the whole shipment, but you sell units one at a time. To compare landed cost against a per-unit selling price you have to spread the freight evenly, so a large order dilutes the freight cost per piece and a small order concentrates it.
Should I include customs brokerage and port fees?
Yes — fold brokerage, terminal handling and inland haulage into the total freight figure, and any bonds or clearance charges into the insurance & misc field, so the landed cost reflects every cost of getting goods to your door.
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Educational estimate, not financial advice. Fee rates and duties change — confirm current figures with the marketplace, carrier or customs authority.