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Importing

Landed Cost Calculator

Supplier price is only part of what imported stock costs you. Add international freight, insurance, customs duty, import tax and clearance fees - in the right order and the right currency - to find your total landed cost and the cost per unit that should drive your pricing.

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Goods
$

The price on the supplier invoice, per unit.

units

The currency you pay duty and taxes in.

How much 1 unit of the supplier currency costs in your import currency. Use the rate you will actually pay, or the customs rate if you are estimating duty.

International shipping and insurance
$
$
Customs duty and import tax

Look up the duty rate for your product’s tariff code and origin in the official tariff of the destination country.

%

The United States generally values goods excluding international freight. The UK and EU generally include freight and insurance (CIF).

%

For example import VAT in the UK. Enter 0 if no import tax applies.

VAT-registered businesses can often recover import VAT. It is still shown as cash paid at import.

Other import costs (in your import currency)
£

Customs broker, clearance and port handling charges.

£

For example inland delivery, inspection or storage at the port.

Results

Fill in the fields marked * to see your results here. Or load the example to see how it works.

Estimate only. Not a quote, tax advice or legal advice.

The landed cost formula

Goods value = Unit cost × Quantity × Exchange rate
Customs value = Goods value (product-only basis) or Goods + Freight + Insurance (CIF basis)
Duty = Duty rate × Customs value
Import tax = Tax rate × (Customs value + Duty)
Landed cost = Goods + Freight + Insurance + Duty + Non-recoverable import tax + Brokerage + Other costs
Landed cost per unit = Landed cost ÷ Quantity

Two details change the answer more than people expect. The first is the valuation basis: whether duty is charged on the product alone or on the product plus freight and insurance. The second is the tax base: import VAT is commonly charged on the customs value plus the duty, so duty is partly taxed again. The calculator lets you set both.

Every amount is converted into your import currency before anything is added. Freight and insurance can be entered in either currency, and brokerage and other local costs are always entered in your import currency, so values in different currencies are never added together unconverted.

Worked example

An illustrative UK importer buys 1,000 units at $4.20 from a supplier invoicing in US dollars, at an exchange rate of 0.79 GBP per USD. The duty rate and VAT rate here are examples, not the rates for any particular product.

Goods value1,000 × $4.20 = $4,200.00 × 0.79 = £3,318.00
Freight and insurance$620 + $25 = $645 × 0.79 = £509.55
Customs value (CIF)£3,827.55
Duty at 4%£153.10
Import VAT at 20% on £3,980.65£796.13 (recoverable, so excluded)
Brokerage and other costs£85.00 + £140.00
Landed cost£4,205.65, or £4.21 per unit
Cash paid including VAT£5,001.78

The goods cost £3.32 per unit at the factory gate but £4.21 landed - about 27% more. Pricing from the supplier price alone would overstate the margin on every unit sold. If the importer could not recover VAT, the landed cost would rise to £5.00 per unit.

How to use the result

  • Use landed cost per unit as the product cost in the Shopify margin and Amazon FBA calculators.
  • Watch the cost added on top of goods. A high percentage often points to small order quantities (freight and fixed fees spread over few units) or a product in a high-duty tariff line.
  • Plan cash flow with cash paid including recoverable tax: import VAT is paid at the border even if you reclaim it later.
  • Feed the landed value into the inventory carrying cost calculator to see what it costs to hold the stock once it arrives.

Common mistakes and limitations

  • Using the wrong valuation basis for the destination country, which under- or overstates duty.
  • Forgetting that import tax is charged on duty too, where that applies.
  • Counting recoverable VAT as a cost, or forgetting non-recoverable tax entirely.
  • Leaving out smaller fees such as customs processing fees, port and terminal handling, inspections, inland delivery and currency conversion margins. Add them under brokerage or other import expenses.
  • Assuming one duty rate. Additional, anti-dumping or retaliatory duties, quotas, preferential rates under trade agreements and low-value thresholds can all change what is due. These rules change, sometimes at short notice.

This calculator applies the rates and bases you choose. It is not a customs assessment, tax advice or a binding classification. Verify the duty and tax treatment for each shipment with the destination country’s official tariff or a licensed customs broker.

Methodology and sources

Amounts are converted to the import currency at the exchange rate you enter, then calculated in whole minor units (cents or pence): each line is rounded once, half away from zero, and totals are exact sums of the rounded lines. Per-unit cost is the total divided by quantity and is shown with extra decimals when it is below one unit of currency. No duty or tax rates are built in.

Official sources for tariff rates include:

  • United States: the Harmonized Tariff Schedule published by the US International Trade Commission (hts.usitc.gov).
  • United Kingdom: the UK Integrated Online Tariff (trade-tariff.service.gov.uk).
  • European Union: the TARIC database maintained by the European Commission.

Frequently asked questions

What is landed cost?

Landed cost is the total cost of getting a product to your warehouse or door: the supplier price plus international shipping, insurance, customs duty, import taxes that you cannot recover, brokerage and other import charges. Divided by the number of units, it is the true cost per unit to use in pricing.

Should import VAT be included in landed cost?

Only if you cannot reclaim it. A VAT-registered business can often recover import VAT, so it is a cash-flow cost rather than a true cost and is usually left out. If you cannot recover it, include it. The calculator shows both the landed cost and the total cash paid.

What is the difference between FOB and CIF valuation?

In this context, a product-only (FOB-style) basis charges duty on the value of the goods without international freight and insurance, while a CIF basis adds freight and insurance to the customs value. The United States generally uses the former and the UK and EU generally use the latter, but always check the rules for your shipment.

Which exchange rate should I use?

For your own cost, use the rate you actually pay your bank or payment provider, including its margin. Customs authorities convert values at an official rate set for the period, which can differ slightly, so duty may not match your estimate exactly.

How do I split freight across different products in one shipment?

Run the calculator per product with a share of the freight, or for the whole shipment and allocate the result. Common allocation methods are by value, by weight or by volume; choose the one that best reflects what drove the freight cost and apply it consistently.

Is this an official duty assessment?

No. Duty and tax depend on the tariff classification of the goods, their origin, the trade agreements and reliefs that apply, valuation rules and any additional duties. Use the official tariff for the destination country and a licensed customs broker for binding advice.