Question 1

What is landed cost and how do you calculate it?

Accepted Answer

Landed cost is the total cost of getting a product into your hands, not just what you paid the factory. The formula is: Landed Cost = Product Cost + Freight + Insurance + Customs Duty + Other Fees (broker, disbursement, handling), all divided per unit. This calculator does that math for you and shows exactly how much each component adds to your per-unit cost.

Question 2

What's included in a total landed cost calculation?

Accepted Answer

Five things: the unit cost you pay your supplier (EXW/FOB price), international freight, cargo insurance, customs duty, and any other fees like customs broker charges, disbursement fees, or destination handling. Missing any one of these is why many sellers underestimate their true cost per unit.

Question 3

Is customs duty calculated on FOB value or CIF value?

Accepted Answer

It depends on the destination country. The US generally assesses duty on the goods' transaction (FOB) value only, excluding international freight and insurance. Most other countries — including the EU, UK, Canada, and Australia — assess duty on the CIF value (Cost + Insurance + Freight combined), which results in a higher dutiable base. Use the "Duty calculated on" toggle above to match your destination country's rule.

Question 4

How do I find my product's customs duty rate?

Accepted Answer

Duty rates depend on your product's HS (Harmonized System) code, not just its general category, and vary by destination country and trade agreements. Look up your HS code with your customs broker or your country's official tariff database (e.g. the USITC Harmonized Tariff Schedule for US imports), then enter that rate into the calculator.

Question 5

What's the difference between landed cost and COGS?

Accepted Answer

COGS (Cost of Goods Sold) traditionally refers to just the product's purchase cost. Landed cost is a fuller picture that adds everything it costs to get that product to your warehouse — freight, insurance, duties, and fees — which is what you should actually use to set margins and pricing, not just the factory price.

Question 6

Can I use this as a total landed cost calculator for a full shipment, not just one unit?

Accepted Answer

Yes. Enter your total freight, insurance, and other fees for the whole shipment along with your unit count, and the calculator splits them evenly per unit while also showing your total landed cost for the entire order.

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