Free tool
Landed cost calculator
Enter each shipment line and its shared charges to get a landed unit cost per line, with duty computed on the base your customs regime uses and shared charges split by the allocation method you pick.
| Line item | Quantity | Unit cost | Duty rate override | |
|---|---|---|---|---|
Estimated landed cost
$8,970
- Line A: $10.25 per unit landed (28.1% above purchase price), $5,125.71 total for 500 units
- Line B: $19.22 per unit landed (28.1% above purchase price), $3,844.29 total for 200 units
Goods $7,000, duty $350, freight/insurance/brokerage/other $1,620. Overall uplift 28.1% above purchase price.
The formula
Goods value per line = quantity × unit cost
Duty per line = duty rate × (goods value, or goods value + that line's share of freight and insurance if the duty base is CIF)
Shared charges (freight, insurance, brokerage, other) are split across lines by the chosen allocation basis, so every dollar of shared cost is assigned to exactly one line
Landed cost per line = goods value + duty + that line's share of shared charges
Unit landed cost = landed cost per line ÷ quantity
Uplift % = (unit landed cost − unit cost) ÷ unit cost
- Duty base
- Customs regimes differ on what duty is assessed against. Some assess only the goods (transaction) value; others assess the CIF value, meaning cost, insurance and freight together, so duty is computed on a larger base. This calculator offers both as an explicit toggle rather than assuming one; check which base applies under your own customs regime and tariff classification before relying on the result, since this calculator carries no tariff rate data.
- Allocation basis
- Shared charges like freight have to be spread across the lines in a shipment somehow. By value spreads them in proportion to each line's goods value, which is the common default. By quantity, weight or volume spread them in proportion to unit count, total weight or total volume instead, which matters when a shipment mixes light, low-value items with heavy or bulky ones, since freight is driven by weight and volume, not price.
- Incoterm
- The Incoterm on a purchase order determines which of freight, insurance, duty and brokerage the buyer bears at all, and at what point risk transfers, but it does not itself compute a dollar amount. This calculator assumes the shared charges entered here are ones the buyer is responsible for; check the shipment's Incoterm before assuming freight or insurance belongs in the allocation.
- Line item
- One SKU or purchase order line in the shipment, with its own quantity and unit cost before landed charges.
Worked example
- Two lines land in one shipment: 500 units at $8 (goods value $4,000) and 200 units at $15 (goods value $3,000), for a combined goods value of $7,000.
- At a 5% duty rate on goods value, duty is $200 on line A and $150 on line B, totaling $350.
- Freight $1,400, insurance $70 and brokerage $150 are shared charges of $1,620, split by value: $925.71 to line A and $694.29 to line B, since line A carries the larger share of goods value.
- Landed cost per line is goods + duty + shared charges: $5,125.71 for line A and $3,844.29 for line B, for a shipment total of $8,970. Divided by quantity, unit landed cost is $10.25 for line A (a 28.1% uplift over its $8 unit cost) and $19.22 for line B (28.1% uplift).
When it applies
- A single shipment carrying two or more line items where freight, duty, insurance and brokerage need to be spread across those lines to get a true per-unit cost, not just a shipment total.
- Comparing a supplier's quoted unit price against what the item actually costs once it lands, to check margin or set a sell price with the real cost basis.
- Choosing an allocation basis deliberately when a shipment mixes items of very different weight, volume or value, rather than defaulting to a value split that can misstate cost for a heavy, low-value line.
When it breaks down
- This calculator takes a duty rate as a direct input; it carries no tariff schedule and cannot classify a product under the Harmonized Tariff Schedule or tell you what rate applies. Look that up before using this calculator.
- A shipment with per-line duty rates that vary by tariff classification is only handled if each line's own rate is entered as an override; a single shipment-level rate applied to every line will misstate duty on a mixed shipment.
- This calculator computes an inventoriable landed unit cost at time of import. It does not track it forward through inventory valuation, apply a costing method like FIFO or weighted average, or compute cost of goods sold once the item sells.
Common mistakes
Comparing supplier unit price across countries without landing it first
A lower quoted unit price can still land at a higher cost once freight, duty, insurance and brokerage are added, especially for a distant or low-value-density supplier. This calculator's uplift % makes that gap visible per line instead of hiding it in a shipment total.
Splitting shared charges by value on a shipment where weight or volume actually drives the cost
Freight is billed against weight or volume, not against the goods value being shipped, so a value-based split can overstate the shared cost carried by a light but expensive line and understate it for a heavy, low-value one. Pick the allocation basis that actually drove the charge.
Assessing duty on the wrong base
Applying a duty rate to the goods value when the applicable regime assesses it on the CIF value (or vice versa) misstates duty by exactly the freight-and-insurance share of the gap. Confirm the base your customs regime uses before relying on either toggle.
Questions
What is included in landed cost?
Commonly the supplier's unit price, international freight, cargo insurance, import duty, and brokerage or customs clearance fees, allocated down to a per-unit figure for each line in a shipment. Which of these the buyer actually bears depends on the shipment's Incoterm; this calculator assumes the charges you enter are ones you are responsible for and only allocates them across lines, it does not decide who owes what.
Is landed cost part of COGS?
Generally, yes: landed cost is capitalized into inventory cost when the unit is received, and it flows into cost of goods sold when that unit is sold, under the inventory costing rules that govern most accounting frameworks. This is a general description, not accounting advice for a specific business. Confirm the treatment with an accountant for your own books.
Does landed cost include tariffs and duty?
Yes, duty is one of the core components this calculator allocates, computed on whichever base your customs regime uses: the goods value alone, or the CIF value that adds freight and insurance first. It carries no tariff schedule itself, so the duty rate and which base applies are inputs you supply, not something it looks up.
What is the difference between landed cost and FOB?
FOB is an Incoterm: it sets the point, typically the port of shipment, where risk and cost responsibility pass from seller to buyer, and an FOB price is usually just the goods value at that point. Landed cost starts from that goods value and adds everything the buyer incurs afterward (freight, insurance, duty, brokerage) to get the true cost once the unit has actually arrived.
Should landed cost be included in inventory value?
Yes. Inventory should be valued at landed cost, not just the supplier's invoice price, so that the cost carried on the balance sheet and used for margin reflects what the unit actually cost to get there. Leaving freight, duty and other landed charges out of inventory value overstates margin on every imported or freight-heavy line.
Related
Published by Skuvelo. Results are estimates computed from the figures you enter, not a reading of your own sales or stock.
A calculator answers once. Skuvelo keeps answering.
This tool computes one number from what you type. Skuvelo computes it continuously, for every SKU, from your own sales and stock.