SellersCalc

Import math

Landed Cost Calculator

The factory price is not your cost — landed cost is what a unit really costs by the time it reaches your warehouse.

Landed cost = product cost + freight per unit + duty + insurance and other charges. A unit bought for $8.00 with $1.50 of freight, a 6% duty ($0.48) and $0.40 of insurance and handling lands at $10.38 — 29.7% above the factory price. Every margin, ad-spend and pricing decision built on the $8.00 figure quietly overstates profit by that gap. Enter your per-unit numbers to get the landed cost, the duty amount, and how far above product cost your inventory really lands.

Landed Cost Calculator — your numbers

Landed cost per unit

$10.38

Duty per unit

$0.48

Uplift over product cost

29.8%

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

Embed this calculator on your site — free →

Worked examples

Typical light consumer good

Product cost $8.00
Freight $1.50
Duty rate 6%
Insurance + other $0.40
Landed cost per unit $10.38
Duty per unit $0.48
Uplift over product cost 29.8%

The "$8 product" really costs $10.38 — a 29.7% uplift before it earns a cent.

Tariff-heavy category

Product cost $20.00
Freight $3.00
Duty rate 25%
Insurance + other $1.00
Landed cost per unit $29.00
Duty per unit $5.00
Uplift over product cost 45.0%

A 25% tariff adds $5 per unit; landed cost is 45% above the factory price.

Frequently asked questions

What costs belong in landed cost?

Everything it takes to get a sellable unit onto your shelf: the factory price, inbound freight and insurance, customs duty and any tariffs, brokerage and port fees, and inbound handling. Marketplace fees and outbound shipping to customers stay out — those are selling costs, and mixing them in double-counts them against your margin math.

How do I convert a freight invoice into freight per unit?

Divide the full inbound bill — ocean or air freight, origin and destination charges, drayage — by the units in the shipment. A $1,800 invoice covering 1,200 units is $1.50 per unit. Recalculate for each shipment: per-unit freight swings hard between air and ocean and between small and full-container orders.

Why does this matter if my margin already looks fine?

Because margin built on the factory price is fiction. A $30 product costing "$8" looks like a 73% margin; at a $10.38 landed cost it is actually 65%. Eight points of phantom margin is often the difference between profitable ads and quietly losing money on every funded order.

Do duty rates change, and how do I check mine?

Yes — tariff schedules move with trade policy, sometimes several times a year. Your rate depends on the product’s HTS classification and country of origin. Look up the code on the official harmonized tariff schedule or ask your customs broker, and re-check before every reorder rather than reusing last year’s rate.

Related calculators

Part of the Shipping & Landed Cost collection.