Landed Cost Estimator & Graphical Suite
Pricing stage by delivery term & Risk Transfer
A. Product Information & Base Pricing
Tier 1 BaseB. Origin Logistics & Export Charges (EXW → FOB)
Origin StackC. International Freight & Marine Insurance (FOB → CIF)
Transit StageD. Customs Duty, Anti-Dumping & Import VAT
Government TariffsE. Destination Port Drayage, Storage & Financing
Destination DoorDelivery-term price step waterfall
Cumulative Cost StackLanded Cost Component Share
$0.00 TotalTarget Resale Profit Margin & Wholesale MSRP
35.0%Market Volatility Sensitivity Stress-Test
Live Scenario SimulationWhat is landed cost?
Landed cost is the total cost of getting a product to your warehouse door: the price you pay the supplier plus every freight, insurance, duty, tax and handling charge along the way. Dividing it by the number of units gives the true cost per unit, which is the figure to use when you set a selling price or compare suppliers.
Landed cost = Product cost + Freight + Insurance + Duties + Taxes + Fees + Inland delivery
The cost elements, step by step
| Element | What it covers | Typical basis |
|---|---|---|
| Product cost | Supplier invoice value | Per the sales contract and Incoterm |
| International freight | Sea, air or road to the destination port | Per container, per m³ / revenue ton, or per kg |
| Cargo insurance | Loss or damage in transit | Often around 110% of CIF value × premium rate |
| Import duty | Customs tariff on the goods | Rate from the HS code × customs value |
| VAT / import tax | Consumption tax charged at import | Usually on customs value + duty |
| Clearance and port fees | Broker, terminal handling, documentation, inspection | Per shipment or per container |
| Inland delivery | Port to warehouse | Per trip or per km |
Which of these you pay depends on the Incoterm. On FOB terms the buyer pays freight and insurance; on CIF the seller includes them in the price; on DDP the seller pays almost everything. See the Incoterms® 2020 guide.
How customs value is calculated
Duty is a percentage of the goods' customs value, but countries do not all use the same starting point:
- CIF basis — most countries, including the European Union and Egypt, charge duty on cost + insurance + freight to the port of import.
- FOB basis — the United States and Canada generally exclude international freight and insurance from the value for duty.
- Duty rate comes from the national tariff line for your HS code. Trade agreements can cut it to zero if the goods meet the rules of origin and you hold a valid certificate of origin.
- Taxes on top — VAT or sales tax at import is usually charged on customs value plus duty, so duty increases the tax as well.
Worked example (CIF basis)
Goods USD 20,000 · freight USD 2,000 · insurance USD 100 → CIF value USD 22,100.
Duty at 10% = USD 2,210. VAT at 14% on (22,100 + 2,210) = USD 3,403. Add clearance and delivery of USD 600 and the total landed cost is USD 28,313, about 42% above the supplier price.
Hidden costs that catch importers out
- Currency movements between order and payment. Use the stress test above and check rates in the currency converter.
- Demurrage and detention when containers stay at the port or with you beyond the free days.
- Pre-shipment inspection and certificates required by some destinations; see the cargo insurance and inspection portal.
- Bank charges on letters of credit or transfers; see the documentary credits workbench.
Frequently asked questions
What is included in landed cost?
Product price, international freight, insurance, import duty, import VAT or sales tax, customs clearance and port fees, and inland delivery to your premises.
Is import duty calculated on FOB or CIF value?
Most countries, including the EU and Egypt, use CIF value. The United States and Canada generally use a value that excludes international freight and insurance.
How do I calculate landed cost per unit?
Add every cost element for the shipment and divide the total by the number of units. Allocate shared costs by value or by volume, whichever reflects how they were charged.
Why is landed cost higher than the supplier price?
Freight, duty, taxes and fees are added on top, and import VAT is often charged on the duty as well. On long routes with high duty rates the total can be 30–60% above the invoice price.
Can a free trade agreement reduce landed cost?
Yes. If the goods qualify under the agreement's rules of origin and you present a valid certificate of origin, the duty can fall to zero or a reduced rate.