Free Calculators
Free Landed Cost Calculator
What does each unit really cost once the shipment has arrived? Enter the quantity, the purchase cost per unit and the shipment costs you know. One free MarginGuides account shows your landed cost per unit, as often as you need.
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How the calculator works
Free landed cost calculator: the cost per unit of a shipment once freight, insurance, customs duty and import charges are added to the purchase cost.
Total landed cost is the purchase cost of every unit (the purchase cost per unit times the quantity) plus the freight, insurance, customs duty, clearance and handling and additional import charges you enter for the shipment. Landed cost per unit is that total divided by the quantity, so the shipment costs are spread evenly across the units.
Worked example
You import 100 units at EUR 10 each. The shipment costs EUR 200 in freight, EUR 20 in insurance, EUR 50 in customs duty and EUR 30 for clearance and handling.
- Purchase cost of all units: EUR 1,000.00
- Shipment costs: EUR 300.00
- Total landed cost: EUR 1,300.00
- Landed cost per unit: EUR 1,300.00 / 100 = EUR 13.00
Each unit costs EUR 13.00 to land, not the EUR 10 on the supplier quote - 30% more. The figures are illustrative. Use your own quote and shipment costs.
What the calculator does not do
It adds up the amounts you enter, nothing else. It does not look up a tariff code or a duty rate, apply a trade agreement, add costs because of an Incoterm, convert currencies or add VAT, and choosing a currency never implies a tax or a duty. Costs you leave out, such as import VAT that is genuinely not recoverable, storage after arrival or returns, are not included. To see which costs your terms leave with you, read how Incoterms affect profitability.
Landed cost and margin
A margin measured against the supplier price alone looks better than it is. The difference is explained in landed cost vs product cost, and before you commit to an order see how to evaluate a supplier quote. Use your landed cost per unit as the product cost in the Free Profit Margin Calculator to see the contribution each sale leaves, or in Analyze for the full decision.
More free calculators
- Free Profit Margin Calculator: how much each sale really contributes after its costs and selling fees.
- Break-Even Advertising Calculator: the return on ad spend a product needs before advertising starts costing you money.
All of them are in the Free Calculators collection, and one free account works for every one.
Frequently asked questions
- What is landed cost?
- Landed cost is what a product really costs once it has arrived where you sell from: the purchase price plus the freight, insurance, customs duty, clearance and other import charges paid to get it there. It is usually higher than the supplier price, and it is the cost a margin should be measured against.
- How is landed cost per unit calculated?
- The purchase cost of all units (purchase cost per unit times the quantity) plus every shipment cost you enter, divided by the quantity. 100 units at EUR 10 with EUR 300 of shipment costs land at (1,000 + 300) / 100 = EUR 13.00 per unit.
- Does the calculator work out customs duty for me?
- No. Enter the customs duty amount you were charged or quoted. The calculator does not look up tariff codes, duty rates or trade agreements, and choosing a currency or a supplier country never adds a duty. Duty depends on the product, its origin and its customs value; your customs broker or the customs authority can confirm it.
- Does it use Incoterms?
- No. Incoterms decide which costs the buyer pays, but the calculator never adds or removes a cost because of them. Enter the freight, insurance and charges you actually pay under your terms: under EXW or FOB that is usually the main freight and insurance; under CIF or DDP part of it is already in the supplier price.
- What about VAT, import VAT or exchange rates?
- Enter amounts excluding VAT. Import VAT or GST that your business can reclaim is not a cost, so it is not part of a landed cost; a tax that is genuinely not recoverable for you can be entered as an additional import charge. The calculator does not convert currencies: enter every amount in the one currency you choose, converted at your own rate if needed.
- Should I enter shipment costs per unit or in total?
- In total, for the whole shipment: freight, insurance, customs duty, clearance and handling and other import charges are usually invoiced per shipment. Only the purchase cost is entered per unit. The calculator spreads the shipment costs evenly across the units.
- Why do I need an account to see the result?
- The calculator is free, and so is the account. One free MarginGuides account works for every MarginGuides Free Calculator, with no limit on how often you calculate. Creating an account is free and does not start a paid subscription.