Landed Cost Calculator
Landed cost per unit = total landed cost ÷ sellable units. 2,000 mugs and 3,000 tea towels worth $16,500.00 FOB land in Los Angeles for $22,307.78: $8.14 a mug and $2.01 a towel, split by value.
- Stoneware mugs$8.14 a unit
- Cotton tea towels$2.01 a unit
Products on this shipment
Duty rates here are examples: the mug’s 16.5% is an example 6.5% + 10%. Take yours from the tariff schedule for each HS code and origin. Weight and volume can be in any unit, as long as every line uses the same one.
Shipment costs
Duty and import tax are computed per line. Insurance, MPF and HMF follow value. Freight, broker, port, inland and other charges follow the method you pick.
US entry fees
Fee defaults are the FY2027 limits from CBP Dec. 26-14, required from 1 October 2026 and checked 2 October 2026. CBP resets them every 1 October.
Import VAT or GST
Landed cost per unit, by product
| Product | Sellable units | Goods | Duty | Fees or tax | Freight and shared | Landed total | Per unit | Price at 50% margin |
|---|---|---|---|---|---|---|---|---|
| Stoneware mugs | 2,000 | $12,000.00 | $1,980.00 | $56.57 | $2,236.36 | $16,272.93 | $8.14 | $16.27 |
| Cotton tea towels | 3,000 | $4,500.00 | $675.00 | $21.21 | $838.64 | $6,034.85 | $2.01 | $4.02 |
| Shipment | 5,000 | $16,500.00 | $2,655.00 | $77.78 | $3,075.00 | $22,307.78 |
Per unit under each split method
| Product | By value | By weight | By volume | Spread per unit |
|---|---|---|---|---|
| Stoneware mugs | $8.14 | $8.25 | $8.05 | $0.20 |
| Cotton tea towels | $2.01 | $1.94 | $2.07 | $0.13 |
Duty base, import tax, per-unit uplift and the component split.
Estimates for planning only, not a freight quote or a customs ruling. The calculation runs in your browser.
How to Calculate Landed Cost in 6 Steps
Landed cost is a chain. Get each link from the document that sets it, not from memory.
- List each product line. Units and FOB unit cost per SKU, from the commercial invoice.
- Collect the shipment costs. Freight, insurance, broker fee, port handling, inland delivery and anything else billed for this shipment.
- Work out duty by line. Customs value × the duty rate for that line’s HTS code and origin. Lines on one entry can carry different rates.
- Add the entry fees or import tax. In the US, MPF on formal entries and HMF on ocean cargo. Elsewhere, import VAT or GST on its own base.
- Allocate the shared costs. Split freight and the per-shipment charges across lines by value, weight or volume. State which method you used.
- Divide by sellable units. Each line’s landed total ÷ the units you can sell. Damaged or short-shipped units raise the cost of the rest.
| Line | Formula | Where the number comes from |
|---|---|---|
| Goods value | Units × FOB unit cost, per line | Commercial invoice |
| Customs value | Goods value, plus freight and insurance only on a CFR or CIF basis | US: transaction value, so FOB |
| Duty | Line customs value × line duty rate | Tariff schedule for the code and origin |
| MPF | Entry customs value × 0.3464%, held between $34.58 and $670.86 | Formal US entries from 1 October 2026 |
| HMF | Entry customs value × 0.125% | Ocean cargo through a US port |
| Import VAT or GST | Tax base × tax rate, left out of cost if recoverable | Destination tax authority |
| Line share | Line value, weight or volume ÷ the shipment total | The method you choose |
| Line landed cost | Goods + duty + share of freight, insurance, fees and shared charges | Sums to the shipment total |
| Landed cost per unit | Line landed cost ÷ sellable units | Units you can sell, not units ordered |
| Price at target margin | Landed cost per unit ÷ (1 − margin) | Gross margin on landed cost |
A Los Angeles Brand Landing Two Products by Sea
A homeware brand in Los Angeles, California imports mugs and tea towels from Ningbo through the Port of Long Beach on one formal entry. Every rate and cost below is an example chosen to show the arithmetic.
Products
2,000 mugs at $6.00 (example duty 16.5%) and 3,000 towels at $1.50 (example duty 15%). Goods $16,500.00 FOB.
Shipment costs
Freight $2,100.00, insurance $85.00, broker $150.00, port $240.00, drayage to the warehouse $380.00, other $120.00.
Result, split by value
$22,307.78 landed, 35.2% above goods value. $8.14 a mug and $2.01 a towel.
| Line | How it was built | Amount |
|---|---|---|
| Goods value (FOB) | 2,000 × $6.00 + 3,000 × $1.50 | $16,500.00 |
| Duty, mugs | $12,000.00 × 16.5% (example) | $1,980.00 |
| Duty, towels | $4,500.00 × 15% (example) | $675.00 |
| MPF | $16,500.00 × 0.3464%, inside the $34.58 to $670.86 limits | $57.16 |
| HMF | $16,500.00 × 0.125%, ocean cargo | $20.63 |
| Due to CBP at entry | Duty + MPF + HMF | $2,732.78 |
| Freight and insurance | $2,100.00 + $85.00 | $2,185.00 |
| Broker, port, inland, other | $150.00 + $240.00 + $380.00 + $120.00 | $890.00 |
| Total landed cost | Goods + entry charges + freight + shared | $22,307.78 |
How to Calculate Landed Cost for Multiple Items
Duty belongs to a line, but freight and fees belong to the shipment. The split method decides how much of the shared cost each line carries.
Expensive lines carry more
Simple and auditable. It suits lines of similar density, and it is how value-based charges such as insurance, MPF and HMF fall anyway.
Heavy lines carry more
Close to how air and road freight bill, on actual or volumetric weight. Use it when heavy, low-value goods share a shipment with light, valuable ones.
Bulky lines carry more
Close to how LCL ocean freight bills, by the cubic meter or the ton, whichever is greater. Use it for light, bulky goods. Get unit volume from the CBM calculator.
| Product | Share by value | Share by weight | Share by volume | Per unit by value | By weight | By volume |
|---|---|---|---|---|---|---|
| Stoneware mugs | 72.7% | 80.0% | 66.7% | $8.14 | $8.25 | $8.05 |
| Cotton tea towels | 27.3% | 20.0% | 33.3% | $2.01 | $1.94 | $2.07 |
Landed Cost Per Unit at Different Freight Costs
The example shipment with only the freight changed. Each row comes from the calculator’s own formula. The freight figures are examples, not rates.
| Example freight | Mug, by value | Mug, by weight | Mug, by volume | Towel, by value | Towel, by weight | Towel, by volume |
|---|---|---|---|---|---|---|
| $1,000 | $7.74 | $7.81 | $7.68 | $1.91 | $1.87 | $1.95 |
| $2,100 | $8.14 | $8.25 | $8.05 | $2.01 | $1.94 | $2.07 |
| $3,500 | $8.65 | $8.81 | $8.51 | $2.14 | $2.03 | $2.23 |
| $5,000 | $9.19 | $9.41 | $9.01 | $2.28 | $2.13 | $2.39 |
| $8,000 | $10.28 | $10.61 | $10.01 | $2.55 | $2.33 | $2.73 |
FOB vs Landed Cost: What Each Price Leaves Out
A supplier quote stops at its trade term. Landed cost carries on to your door. Here is one mug from the example, step by step.
| Step | What it adds | Per mug |
|---|---|---|
| FOB unit price | The supplier price, loaded at the origin port | $6.00 |
| + freight and insurance | Main-leg freight by the chosen method, insurance by value | $6.79 |
| + duty, MPF and HMF | What CBP collects at entry, by line | $7.81 |
| = landed cost | + broker, port handling, inland delivery and other charges | $8.14 |
Goods at the seller’s door
Still to add: Origin trucking and export clearance, then everything below.
Goods loaded at the origin port
Still to add: Main-leg freight, insurance, duty, fees, broker, port and inland.
Goods plus main-leg freight (and insurance on CIF)
Still to add: Duty, fees, broker, destination port and inland delivery.
Goods delivered with duty paid by the seller
Still to add: Usually only your own receiving costs.
The US Entry Costs Inside Landed Cost
US duty is assessed on the transaction value, which leaves out international freight and insurance. Formal entries also pay MPF, and ocean cargo pays HMF.
Sources, checked 2 October 2026: CBP Dec. 26-14, 91 FR 48398 (FY2027 MPF limits, from 1 October 2026); 19 CFR 24.24 (HMF). Informal entries pay a flat MPF instead, $2.77 when filed electronically.
Import VAT and GST: Cash at Entry, Not Always Cost
Switch the calculator to VAT or GST mode and the tax is computed per line on its own base. Whether it belongs in landed cost depends on whether you can reclaim it.
It is a cost
At an example 10% on a CIF base with duty inside, the example shipment’s landed cost becomes $24,750.75, with $2,169.16 of tax.
It is cash flow
Mark it recoverable and landed cost drops to $22,581.59. You still pay $2,169.16 at entry and reclaim it later.
Check the destination
Standard rates, bases and low-value rules for six markets are on the import duty calculator, each with its source.
From Landed Cost to COGS and a Selling Price
Landed cost per unit is what a unit cost you to put into stock. Many businesses carry it into inventory, so it reaches cost of goods sold when the unit sells. Your accountant sets that policy.
| Target gross margin | Same as markup of | Mug price | Towel price |
|---|---|---|---|
| 30% | 42.9% | $11.62 | $2.87 |
| 40% | 66.7% | $13.56 | $3.35 |
| 50% | 100.0% | $16.27 | $4.02 |
| 60% | 150.0% | $20.34 | $5.03 |
Prices are landed cost per unit ÷ (1 − margin), split by value. Channel fees, fulfilment and returns come on top: check them with the markup and margin calculator.
What Goes Into Landed Cost, and How It Is Split
| Component | Who bills it | How the calculator treats it |
|---|---|---|
| Goods value | Supplier | Units × unit cost, per line |
| International freight | Forwarder or carrier | Shared, by the method you choose |
| Cargo insurance | Insurer or forwarder | Shared by value |
| Customs duty | CBP or the destination authority | Computed per line at its own rate |
| MPF and HMF | CBP, via the broker | Computed on the entry, shared by value |
| Import VAT or GST | Destination tax authority | Per line; left out of cost if you mark it recoverable |
| Broker fee | Customs broker | Shared, by the method you choose |
| Port and terminal handling | Terminal, CFS or forwarder | Shared, by the method you choose |
| Inland delivery | Drayage or trucking company | Shared, by the method you choose |
| Other charges | Varies | Exams, storage, demurrage or bank fees; shared by the method |
Six Landed Cost Mistakes That Move the Unit Cost
Dividing by units ordered
Divide by what you can sell. With 2% of units unsellable on the example, the mug rises from $8.14 to $8.30.
Splitting costs by unit count
A count split charges a tea towel the same freight as a mug. Use value, weight or volume, and say which.
Using CIF for a US entry
US duty is on transaction value. A CIF basis overstates the example’s landed cost by $361.89.
Leaving out MPF and HMF
A formal ocean entry pays both. MPF alone is at least $34.58 an entry from 1 October 2026.
Counting recoverable VAT as cost
If your business reclaims import VAT or GST, it is cash at entry, not inventory cost. Budget it, then keep it out.
Reusing a stale rate
Duty rates and fee limits change. Record the source and the date for every rate you enter.
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