Landed Unit Cost Calculator

The quote is the smallest part.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these

Currency

Units in the order

Quoted unit price

Freight for the shipment

Insurance

Duty on CIF value

Clearance & brokerage

Inland transport

Inspection

Landed unit cost

$8.18

27.8% above the quote

Goods$12,800

Freight & insurance$1,880

Duty$954

Clearance, inland & inspection$720

The quoted $6.40 becomes $8.18 on your shelf. Comparing suppliers on the quote alone routinely picks the wrong one, because freight and duty vary by origin and product far more than unit prices do.

How the Landed Unit Cost Calculator works

Freight and duty vary by origin and product far more than unit prices do, which is why comparing suppliers on the quote alone reliably picks the wrong one. The landed figure is the only comparable number.

Also known as: true cost per unit delivered · all-in unit cost · unit cost after freight and duty

Everything up to your shelf

Landed cost is the total cost of getting one unit into your warehouse, ready to sell. It is the number that belongs in every margin calculation and the one most sellers approximate.

The components: ex-works price, inland transport to the port of origin, export clearance, ocean or air freight, insurance, import duty, import VAT if not recoverable, customs clearance, port charges, inland transport to your warehouse, and unloading.

Add the amortised one-offs: tooling, samples, inspection, and any certification required for the market. Spread across the order quantity, these can be several percent on a first order and negligible on a repeat one, which is why first-order landed cost and steady-state landed cost are different numbers and both are worth having.

How the incoterm changes the calculation

Incoterms determine which costs the supplier's price already includes, and comparing quotes on different terms is comparing different things.

EXW, ex-works, means the price covers the goods at the factory door and nothing else. FOB, free on board, includes inland transport and export clearance to the port. CIF adds the freight and insurance to the destination port. DDP covers everything to your door.

The spread between EXW and DDP on the same goods can be 40% or more. A supplier quoting $8 DDP and one quoting $6.50 EXW are not obviously ranked, and sellers who compare the headline numbers routinely choose the more expensive option.

The charges that arrive after the freight quote

Freight quotes cover the main carriage and rarely everything else. The additions at the destination are numerous and each is modest: terminal handling, documentation, customs entry, port security, container release, and demurrage if collection is late.

For a first-time importer these frequently total several hundred pounds on a small shipment, which on a low order quantity is a meaningful addition per unit.

The protection is asking for an all-in quote to your door and confirming what is excluded. Freight forwarders will provide it if asked and will quote main carriage only if not, because that number looks better.

Duty, and getting the classification right

Duty depends on the commodity code and the country of origin, and both are more consequential than sellers expect. Rates within a single product category can vary by ten points or more depending on material composition.

The customs value in most regimes includes freight and insurance, so duty is charged on more than the goods. Import VAT is then calculated on the customs value plus the duty, which means the two compound rather than add.

Getting the code wrong is recoverable retrospectively with penalties, and binding tariff information removes the ambiguity permanently. For a product being imported repeatedly, obtaining it is worth the effort and rarely done by small importers.

Order quantity, and the shape of the curve

Landed cost per unit falls with order quantity for two reasons: the unit price improves at volume, and the fixed shipment costs spread further.

The second effect is frequently larger on small orders. A £900 shipment cost across 500 units is £1.80 each; across 2,000 units it is 45p. That difference alone can be several points of margin.

Which is why the true cost of a small order is much higher than the price list suggests, and why the crossover between LCL and a full container is worth calculating rather than assuming. The calculation should also carry the offsetting costs of the larger order: storage, capital tied up, and the risk of holding stock that may not sell.

Where to go next

The Landed Unit Cost question rarely arrives on its own. These are the ones that usually come with it:

Import Cost Calculator — Every charge from supplier to warehouse.
Supplier Quote Comparison Calculator — Defect rate changes the ranking.
Alibaba Order Cost Calculator — First-order cost against repeat-order cost.
Etsy Fee Calculator — Every Etsy fee on one sale, itemised.

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

What is landed cost?

Everything to get one unit onto your shelf: goods, freight, insurance, duty, clearance, inland transport and inspection.

How much above the quote is landed cost?

For imported consumer goods, commonly 25% to 45% above an FOB quote. Light bulky products run higher because freight dominates.

Does duty apply to freight?

In CIF countries yes, in FOB countries no. That single difference changes landed cost by the duty rate times the freight bill.

Why does this matter for pricing?

Because margin calculated on the quoted price is always wrong and always flattering. A 55% margin on the quote is frequently under 40% on landed cost.

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The one-line version

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