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Landed Cost Calculator: True Import Cost

Add freight, insurance, customs duty, import VAT or GST, broker fees and delivery to the goods value to get the total landed cost and cost per unit.

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Landed cost

18,044.16

Landed cost per unit

7.5184

Customs value

13,460

Duty

1,076.8

Import VAT or GST

2,907.36

Added to the goods value

50.4%

Landed cost = goods + freight + insurance + duty + import tax + fees + inland delivery

Import VAT or GST is charged on the customs value plus duty. If you are VAT or GST registered you can usually reclaim it, so it is not a final cost.

Find the duty rate for your HS code in the importing country's tariff (for the US, the HTS at hts.usitc.gov). This calculator uses the rate you enter.

How to calculate landed cost

Landed cost is the total cost of getting imported goods to your door: the price paid to the supplier plus freight, insurance, customs duty, import taxes, clearance fees and delivery. It is the number to price from, because the invoice value alone can be 20 to 50% short of what the goods really cost you.

How to calculate landed cost

Landed cost = goods + freight + insurance + duty + import tax + fees + inland delivery.

  1. Customs value: most countries charge duty on the CIF value (goods + freight + insurance). The US, Canada and Australia use the FOB value (goods only).
  2. Duty: customs value × the duty rate for the product's HS code, plus any extra tariff.
  3. Import VAT or GST: (customs value + duty) × the tax rate. A VAT registered business can usually reclaim it.
  4. Fees and delivery: customs broker, port and terminal handling, and trucking to your warehouse.

Worked example

ItemAmount
Goods (2,400 units)12,000
Freight and insurance1,460
Duty 8% on CIF 13,4601,076.80
Import VAT 20% on 14,536.802,907.36
Fees and delivery600
Landed cost18,044.16 (7.52 a unit)

Find the duty rate from the HS code (HSN code finder), and see what each Incoterm puts on you in the Incoterms guide.

Copy the result, or save it as a PDF to attach to an email or a purchase file. Nothing you type leaves your browser.

Features

  • CIF or FOB customs value
  • Duty and extra tariffs
  • Import VAT or GST on value plus duty
  • Broker, port and delivery costs
  • Landed cost per unit
  • Copy or PDF

Frequently asked questions

What is landed cost?

The full cost of an imported product once it reaches your premises: purchase price, freight, insurance, duties, taxes, fees and delivery.

Is import VAT part of landed cost?

If you can reclaim it as input tax, leave it out of the cost you price from; it is a cash flow cost only. If you cannot reclaim it, include it.

Why is duty charged on CIF in some countries and FOB in others?

It depends on the importing country's valuation rules. The EU, UK, India and most others use CIF; the US, Canada and Australia use FOB.

Is the calculator free?

Yes. No sign up. It runs in your browser, and you can copy the result or save it as a PDF.

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