How to Calculate Landed Cost - Formula and Checklist
Answer: To calculate landed cost, add product cost, freight, insurance, origin charges, duty and tariffs, import tax, brokerage, destination charges, and inland delivery, then divide by units for landed cost per unit.
Use this page to understand the formula. Use the calculator page for the canonical interactive workflow with duty, tariff, tax, and logistics line items.
To calculate landed cost, add product cost, freight, insurance, origin charges, duty and tariffs, import tax, brokerage, destination charges, and inland delivery, then divide by units to get landed cost per unit.
How the calculation works
The landed cost formula is:
Landed cost = product cost + freight + insurance + origin charges + duty/tariff + import tax + brokerage + destination charges + inland delivery + other import costs.
For a per-unit number:
Landed cost per unit = total landed cost / sellable units.
This page is the formula and checklist companion. The canonical calculator for interactive calculator intent is Landed Cost Calculator. Use that page when you want the full line-item workflow with duty rates, tariff rates, import tax rates, brokerage, destination charges, and per-unit output.
FAQ
What is landed cost?
Landed cost is the full import cost to receive goods at the buyer-controlled destination. It includes the product cost plus logistics, customs, tax, brokerage, and delivery charges needed before the inventory is ready to use or sell.
What is the simplest landed cost formula?
The simplest formula is product cost + shipping + duty + taxes + destination costs. For better import planning, split shipping into freight, insurance, origin charges, brokerage, destination charges, and inland delivery.
Is this page the same as the landed cost calculator?
No. This page is for “how to calculate landed cost” and landed-cost formula queries. The canonical calculator page is Landed Cost Calculator.
Should freight be included in landed cost?
Yes. International freight is part of landed cost because it is required to bring the inventory from supplier origin to the import destination.
Should customs duty be included in landed cost?
Yes. Duty, additional tariffs, merchandise processing fees, harbor maintenance fees where applicable, and other import charges should be included in landed cost planning.
Should Amazon FBA fees be included in landed cost?
No. Amazon referral fees, fulfillment fees, placement fees, storage, advertising, returns, and financing are selling-channel or operating costs after landed cost.
What cost should I divide by units?
Divide the total landed cost by sellable units in the shipment. Do not divide by cartons unless you are specifically planning carton-level freight allocation.
Why does customs valuation matter?
Customs value can determine the duty and tax base. Different countries and incoterms can treat freight, insurance, assists, royalties, and other costs differently, so confirm the exact valuation with a customs broker.
What is the next step after learning the formula?
Use the Landed Cost Calculator for the canonical calculator workflow, then compare the per-unit landed cost with selling price, marketplace fees, advertising, storage, returns, and target margin.
Comparison table
| Page or method | Best for | Canonical role | What it does not do |
|---|---|---|---|
| This how-to page | Learning the landed cost formula and checklist | Formula companion | It is not the main calculator-intent URL |
| Landed Cost Calculator | Interactive landed cost estimates | Canonical calculator | It still requires user-entered rates and cost assumptions |
| U.S. Customs Duty Calculator | Estimating duty, tariffs, MPF, and HMF | Customs-charge companion | It does not model full product landed cost |
| Freight quote | Confirming live air, ocean, or truck costs | Operational quote | It may not include duty, tax, Amazon fees, or margin analysis |
| Spreadsheet model | SKU-level costing and scenario planning | Internal finance model | It can drift if rates, HTS codes, or unit counts are stale |
Dated facts
As of May 13, 2026, landed cost planning for US imports should still separate customs duty and additional tariffs from Amazon FBA fees, because FBA referral, fulfillment, placement, and storage fees are post-landing selling costs. For ocean imports into the United States, Merchandise Processing Fee and Harbor Maintenance Fee can affect customs-side landed cost, while live freight rates and destination charges can change weekly by lane, port, service level, and season.
Frequently asked questions
- What is the landed cost formula?
- Landed cost equals product cost plus freight, insurance, origin charges, duty, tariffs, import tax, brokerage, destination charges, inland delivery, and other import costs.
- Is this page the canonical landed cost calculator?
- No. This page is the formula and how-to companion. The canonical calculator is /tools/landed-cost-calculator/.
- Should duty be calculated on product cost only?
- It depends on the importing country and customs valuation rules. For planning, many sellers model duty on customs value, then confirm the exact base with a customs broker.
- Should Amazon fees be included in landed cost?
- No. Amazon referral, fulfillment, placement, storage, advertising, and returns are selling-channel costs after landed cost.
- Why calculate landed cost per unit?
- Per-unit landed cost shows the true inventory cost that should be compared with selling price, marketplace fees, advertising, and target margin.
- Which page should rank for landed cost calculator?
- The calculator intent should point to /tools/landed-cost-calculator/. This page should serve formula, explanation, and how-to queries.