Landed Cost Calculator
FOB + Freight + Insurance + Duty + Tax = Total Landed Cost
Cost Structure
Share of Total
Detailed Breakdown
| Cost Component | Basis | Amount | % of Total |
|---|---|---|---|
| Total Landed Cost | — | 100% | |
What Is Landed Cost and Why It Decides Your Import Margin
Landed cost is the complete, real cost of getting a product from the supplier's factory into your warehouse — not just the price on the proforma invoice. It bundles the goods value, international freight, cargo insurance, customs duty, import VAT/GST, terminal handling, broker fees and inland transport into one number. Importers who quote from the FOB price alone routinely lose 15–40% of their expected margin, because every one of those add-ons is charged after the deal is signed.
This landed cost calculator reproduces the exact sequence customs authorities use: build the CIF value first, apply duty to CIF, apply VAT to the duty-inclusive base, then add the non-taxable logistics fees. The result is a per-shipment and per-unit figure you can put straight into a pricing sheet.
The Landed Cost Formula, Step by Step
- CIF Value = Goods Value (FOB) + Freight + Insurance
- Customs Duty = CIF × Duty Rate (%)
- Import VAT / GST = (CIF + Duty) × VAT Rate (%)
- Logistics & Compliance = Port/THC + Broker + Inland + Other
- Total Landed Cost = CIF + Duty + VAT + Logistics
- Unit Landed Cost = Total Landed Cost ÷ Quantity
Some jurisdictions apply VAT to CIF only, or include handling fees in the taxable base. Use the Tax Base selector above to match your destination country's rule.
Cost Components Explained
| Component | Typical Share | What Drives It |
|---|---|---|
| Goods value (FOB/EXW) | 60–80% | Supplier price, order volume, raw material index |
| Ocean / air freight | 5–20% | Lane, container type, season, fuel surcharge (BAF) |
| Cargo insurance | 0.1–0.5% | Usually 110% of CIF as insured value |
| Customs duty | 0–35% | HS code, country of origin, FTA eligibility |
| Import VAT / GST | 0–27% | Destination tax law; often recoverable for registered businesses |
| Port, THC & handling | 1–5% | Terminal tariffs, demurrage, storage days |
| Broker & documentation | 0.5–2% | Declaration complexity, permits, inspections |
| Inland transport | 1–6% | Distance from port, truck vs. rail, fuel |
How Incoterms Change the Calculation
The Incoterm on your contract determines which costs are already inside the supplier's price. Under EXW you carry everything, including origin inland haulage and export clearance. Under FOB the supplier covers costs up to loading at the origin port. Under CFR freight is included but insurance is not, and under CIF both freight and insurance sit inside the invoice value. Selecting the wrong Incoterm in a landed cost model is the single most common source of double-counting.
Practical Ways to Reduce Landed Cost
- Verify the HS code. A single misclassified digit can move the duty rate by 10 percentage points. Always confirm the code with a binding ruling for high-volume SKUs.
- Use free trade agreements. A valid certificate of origin can reduce duty to zero on qualifying goods — this is the highest-ROI action in most import files.
- Consolidate shipments. Fixed charges (broker, D/O, THC) do not scale with volume, so a full container almost always beats three LCL loads.
- Negotiate freight annually, not per shipment. Contracted rates on a stable lane typically undercut spot rates outside peak season.
- Control demurrage. Clearance delays are pure loss; pre-file documents before vessel arrival.
- Reassess the Incoterm. Buying FOB and controlling your own freight often beats CIF, where the supplier's margin is hidden inside the freight line.
Frequently Asked Questions
Is landed cost the same as CIF?
No. CIF covers only goods value, freight and insurance. Landed cost adds customs duty, import VAT, terminal handling, broker fees and inland delivery — it is the figure you actually pay to have inventory on your shelf.
Should import VAT be included in landed cost?
It depends on your tax position. VAT-registered businesses in most countries reclaim import VAT, so many importers track it separately and exclude it from the costing used for pricing. If your VAT is not recoverable, it must stay in the landed cost.
What is the correct tax base for VAT?
The most widespread rule is CIF + duty. Some countries add certain handling and inland charges to the taxable base. The Tax Base selector in the tool lets you switch between the three common conventions.
How accurate is this calculator?
The arithmetic is exact for the inputs you provide. Real-world accuracy depends on using the correct HS code, duty rate and applicable trade preferences. Treat the output as a decision-grade estimate and confirm final figures with your customs broker.
Can I calculate landed cost per unit?
Yes. Enter the shipment quantity and the tool divides the total landed cost by units, then applies your target margin to suggest a selling price.
Does the tool handle anti-dumping duties?
Not as a separate line. Add anti-dumping or countervailing amounts to the Other Costs field, or increase the duty rate to the combined effective percentage.
Disclaimer: This tool provides estimates for planning purposes. Actual duties, taxes and charges depend on HS classification, country of origin, trade agreements and current customs regulations. Verify all figures with a licensed customs broker before committing to a purchase.