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Import Margin Calculator

Margin on landed cost, not supplier price.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Duty rates and thresholds change with trade policy. These are planning estimates — the entry filed with customs decides the actual charge.

Margin on landed cost

60.4%

70.9% if you only counted the supplier price

Supplier price per unit£6.40
Landed cost per unit£8.71
Gross profit per unit£13.29
Price needed for 55% margin£19.35

Margin on the supplier's invoice reads 70.9%; on landed cost it is 60.4%. The gap is 10.5% of revenue, and every pricing and advertising decision built on the first number is wrong by that much.

How the Import Margin Calculator works

Margin calculated on the supplier's invoice is always wrong for imported goods, and always wrong in the flattering direction. Duty, freight and clearance sit between the quote and the shelf, and a 55% margin on FOB cost is frequently under 40% on landed cost.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

Why is margin on FOB cost misleading?

Because it excludes 25-45% of what the unit actually cost you. A product bought at £10 FOB and sold at £25 looks like a 60% margin; at £14 landed it is 44%. Every downstream decision built on the first figure is wrong.

How much margin do imported goods need?

More than domestically sourced ones, because the capital is tied up longer and the risks are greater — currency movement, tariff changes, quality issues discovered after the container arrives. Many importers target 50%+ on landed cost for that reason.

How does currency movement affect it?

Directly and often severely. A 10% adverse move between order and payment removes 10% from your cost base assumptions, which on a 40% margin is a quarter of the profit. Forward contracts or invoicing in your own currency both help.

Should I price in a tariff change?

If your product is in a category subject to trade measures, yes — build headroom or plan for a price rise. Products with thin margins and exposure to tariff change are the ones that become unviable overnight.

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