Landed Cost Calculator
Find the true per-unit cost of an imported shipment — product cost, freight, insurance, duty, and fees, broken down.
Landed Cost = Product Cost + Freight + Insurance + Customs Duty + Other Fees
Per-Unit Landed Cost = Total Landed Cost / Quantity
Total Landed Cost
$12,250.00
Per-Unit Landed Cost
$12.25
What landed cost is
Landed cost is the total cost of getting a purchased item — a raw material, a component, a finished product — from your supplier to your door, ready to use or resell. It is not just the price on the supplier's invoice: freight, insurance, customs duties, and fees like broker charges or wire fees all add real dollars on top of the unit price before that material ever reaches your shelf.
The formula
Landed cost adds every cost of acquisition together, then divides by how many units arrived to get a true per-unit number:
Landed Cost = Product Cost + Freight + Insurance + Customs Duty + Other Fees
Per-Unit Landed Cost = Total Landed Cost / Quantity
Why it matters for imported materials
A supplier's quoted unit price is only part of the real cost. Once freight, insurance, and duty are added, the actual per-unit cost is routinely 10-30% higher than the invoice price alone — sometimes more, depending on the shipping method and duty rate. If your BOM or product cost is built from the supplier's price without accounting for landed cost, your margin on that product is smaller than you think, and any sales quote based on it is quietly underpriced.
Worked example
Say you import $10,000 of raw material, with $1,200 in freight, $150 in insurance, a 6% customs duty rate, and $300 in other fees (broker, handling), across a shipment of 1,000 units:
Landed Cost = $10,000 + $1,200 + $150 + $600 (6% duty) + $300 = $12,250
Per-Unit Landed Cost = $12,250 / 1,000 = $12.25
That $12.25 per unit — not the $10.00 supplier price — is the real material cost that should drive your BOM and your pricing.
Frequently asked questions
What is included in landed cost?
Landed cost is everything it takes to get a shipment from your supplier to your dock, ready to use: the product cost itself, freight/shipping, insurance, customs duties or tariffs, and other fees like customs broker charges, port handling, or bank/wire fees on the transaction. It does not include costs after the goods arrive — domestic warehousing, further internal transport, or selling costs are separate from landed cost.
Landed cost vs. COGS: what is the difference?
Landed cost is what it costs to get a unit of inventory to your door — a purchasing-side number, calculated once per shipment. Cost of goods sold (COGS) is what it costs when that inventory is actually sold or consumed in production, and for a manufacturer it usually includes landed material cost plus direct labor and overhead applied during production. Landed cost feeds into COGS as the raw material cost input, but the two answer different questions — see the COGS calculator to take that next step, or read COGS explained for manufacturers for the fuller picture.
How is customs duty actually calculated?
This calculator applies your duty rate as a simple percentage of product cost, which is a reasonable estimate for planning purposes. Actual customs valuation rules vary by country and by the HS (Harmonized System) code your product is classified under — some jurisdictions calculate duty on product cost plus freight and insurance (a "CIF" basis) rather than product cost alone, and rates can include multiple line items (duty, VAT/GST, anti-dumping tariffs). Treat this calculator as a planning estimate and confirm exact duty treatment with a customs broker or your freight forwarder before finalizing pricing.
Why does landed cost matter for imported materials?
Because the invoice price from your supplier is never the real cost. Freight, insurance, and duty routinely add 10-30% or more on top of the unit price, and if that gap isn't factored into your product cost, you're pricing — and quoting — off a number that understates what the material actually cost you. For manufacturers sourcing raw materials or components internationally, landed cost is the number that should feed into your BOM, not the supplier's quoted price alone.
Let your real landed cost drive your BOMs
Nstock costs every purchase lot at what you actually paid to get it — enter your full per-unit cost, freight and duty included, when you receive stock, and that real number flows through your BOMs, production costs, and COGS automatically.