Landed Cost Calculator

Introduction

Calq.’s Landed Cost Calculator helps importers, e-commerce sellers, and purchasing teams estimate the true, all-in cost of getting a product into their market. It brings together product price, shipping, customs duty, taxes, insurance, and other fees so you can set prices, compare suppliers and shipping options, and protect your margins.

How it works

1. Enter your numbers in your local currency. Keep every input in the same currency for accuracy.
2. Add the product cost (usually the invoice total for the items) and shipping cost for the shipment.
3. Provide the total quantity of units in the shipment.
4. Enter the customs duty rate (%) for your product. This comes from your tariff code (HS code).
5. Enter your local Sales Tax/VAT/GST rate (%) that applies at import.
6. Optionally add insurance and any other fees (brokerage, port/terminal charges, disbursement fees, bank and currency conversion costs).
7. Review the results: total landed cost for the shipment and cost per item, plus a clear breakdown of each component.

Inputs explained

• Product Cost: The value of the goods on the commercial invoice. If your quote is on different Incoterms (e.g., EXW, FOB, CIF), make sure this number reflects only the items, not freight-unless your terms bundle freight into the product price.
• Shipping Cost: Door-to-door freight (courier, air, sea, or a mix). Include surcharges you pay to the carrier. If insurance is included in freight, set Insurance to 0 to avoid double counting.
• Quantity: Total number of units in the shipment. The calculator uses this to compute a per-item landed cost.
• Customs Duty (%): The tariff rate for your HS code and country of import. Preferential trade agreements or exemptions may reduce this rate.
• Sales Tax/VAT/GST (%): The import tax rate in your country (national, state, or provincial). Some countries apply additional local levies; include them here if they are percentage-based, or add them to Other Fees if fixed.
• Insurance: The premium you pay to insure the shipment. If you do not insure, enter 0.
• Other Fees: Anything not covered above, such as customs brokerage, port handling, storage/demurrage, security fees, compliance testing, document legalization, disbursement/advancement fees, bank transfer charges, or currency conversion spreads.

Results and interpretation

• Total Landed Cost: The full amount you pay to bring the goods in, including product, shipping, duty, taxes, insurance, and other fees.
• Landed Cost Per Item: Total landed cost divided by quantity. Use this to set retail prices, calculate margins, and compare shipping modes or suppliers.
• Detailed Breakdown: A line-by-line view showing how much each component contributes to your total and per-unit cost.

Method and assumptions

The calculator follows widely used import valuation practices. Because rules vary by country, we apply general defaults and let you adjust inputs to fit local rules.

Core formulas (default approach):

• Duty base (often): Product Cost + Shipping Cost
• Customs Duty = Duty Rate (%) × Duty Base
• Tax base (often): Product Cost + Shipping Cost + Customs Duty
• Sales Tax/VAT/GST = Tax Rate (%) × Tax Base
• Total Landed Cost = Product Cost + Shipping Cost + Insurance + Other Fees + Customs Duty + Sales Tax/VAT/GST
• Landed Cost Per Item = Total Landed Cost ÷ Quantity

Important notes:

• Many countries calculate duty on the cost of goods plus shipping (sometimes called “C&F” or “CFR”). Some also include insurance (CIF). If your country includes insurance in the duty base, add insurance to Shipping Cost or adjust Other Fees accordingly.
• Sales Tax/VAT/GST is often calculated on goods + shipping + duty (and in some places also on insurance and certain fees). If your country excludes some items from tax, subtract them from your inputs or move them to a field that is not taxed locally.
• De minimis value: Many countries set a value threshold below which no duty and/or tax applies. This threshold varies by country and may differ for postal vs. courier shipments. If your shipment is below your local threshold, set duty and/or tax to 0% accordingly.
• Rounding: Results are rounded to two decimals. Minor rounding differences can occur.

Finance and import context

• HS code and tariff rate: The customs classification (Harmonized System) determines your duty rate. Misclassification can change costs significantly and may cause delays or penalties.
• Incoterms matter: EXW/FOB usually mean you pay international freight and import charges. CIF/CIP include freight (and sometimes insurance) in the seller’s price. DDP means the seller covers duty and taxes; in that case, your landed cost may already be baked into the purchase price.
• Brokerage and disbursement: Couriers and brokers may charge a fixed fee plus a percentage for advancing duties and taxes. Include those in Other Fees.
• Trade agreements and reliefs: Preferential origin, tariff quotas, inward processing, and special programs can reduce duties. Verify eligibility and keep proper documentation.
• Special charges: Some products attract excise taxes, anti-dumping duties, or regulatory fees. Add these to Other Fees if applicable.

Tips and strategies

• Keep everything in one currency: Convert supplier quotes before you calculate. Add your bank’s FX spread (often 1-4%) to Other Fees.
• Classify correctly: Confirm the HS code with your broker or customs authority to avoid surprises.
• Compare shipping modes: Air is faster but pricier; sea lowers freight per unit at higher quantities. Use the calculator to test scenarios.
• Watch de minimis: If legal and practical, splitting orders may keep shipments under your country’s threshold. Ensure this complies with local rules.
• Clarify Incoterms with suppliers: Know what is included in the product price versus what you must add.
• Ask carriers about fees: Brokerage, disbursement, and storage can be material. Request a full fee schedule upfront.
• Plan for returns and damages: Build a buffer into your pricing if you expect shrinkage or quality rejects.

Example calculation

Scenario: You import 500 units of an electronic accessory.

• Product Cost: $10,000.00
• Shipping Cost: $1,200.00
• Quantity: 500
• Customs Duty: 5%
• Sales Tax/VAT/GST: 10%
• Insurance: $50.00
• Other Fees: $100.00

Step 1: Duty base (goods + shipping) = $10,000.00 + $1,200.00 = $11,200.00
Step 2: Customs Duty = 5% × $11,200.00 = $560.00
Step 3: Tax base (goods + shipping + duty) = $10,000.00 + $1,200.00 + $560.00 = $11,760.00
Step 4: Sales Tax/VAT/GST = 10% × $11,760.00 = $1,176.00
Step 5: Total Landed Cost = $10,000.00 + $1,200.00 + $50.00 + $100.00 + $560.00 + $1,176.00 = $13,086.00
Landed Cost Per Item = $13,086.00 ÷ 500 = $26.172 → $26.17 per unit

Per-unit view (for insight):

• Product: $20.00
• Shipping: $2.40
• Insurance: $0.10
• Other Fees: $0.20
• Duty: $1.12
• Tax: $2.352 → $2.35 after rounding

Example note on de minimis

If your shipment’s customs value is below your country’s de minimis threshold, duty and/or tax may not apply. In that case, set those rates to 0% and your landed cost becomes product + shipping + insurance + other applicable fees.

Frequently asked questions

1. What is “landed cost” exactly?
   It is the total cost of getting a product to your door or warehouse, including product, shipping, customs duty, import taxes, insurance, and other fees.

2. Where do I find the correct duty rate?
   Look up the HS code for your product and check your country’s tariff schedule, or ask a licensed customs broker. Preferential trade agreements may reduce the rate.

3. Does VAT/GST always include shipping?
   Often yes, and it often includes duty too. However, rules vary by country. If your country excludes certain costs from the tax base, adjust your inputs accordingly.

4. What if my supplier ships DDP?
   DDP (Delivered Duty Paid) means the seller pays duty and taxes. If your purchase price already includes these, you can enter 0% for duty and tax and treat the quoted price as your Product Cost (plus any fees you still pay).

5. Can I use multiple currencies?
   Convert everything to a single currency first. Add any FX fees or bank spreads to Other Fees so they are captured in the landed cost.

6. Why is my broker invoice higher than my estimate?
   Brokers may add disbursement, entry, and handling fees. There can also be storage, inspection, or regulatory charges. Add these to Other Fees for a closer estimate next time.

Summary

Your landed cost drives pricing and profitability. By combining product, freight, duty, taxes, insurance, and fees, Calq.’s Landed Cost Calculator shows the true cost per item so you can make confident purchasing and pricing decisions. Use the calculator above with your own figures, adjust for your local rules, and keep an eye on duty bases, tax bases, and de minimis thresholds.

Disclaimer

This tool provides general guidance for planning and comparison. It is not legal, tax, or customs advice. Duty and tax rules, thresholds, and rates vary by country and change over time. Always verify specifics with your customs authority or a licensed broker.