What is Landed Cost and Why It Matters

Landed cost is the total price of a product once it has arrived at your buyer’s door. You add the original price of the product. Include all shipping costs. Add insurance fees. Include customs duties and taxes. Add any handling charges. The sum is the landed cost.

Components of Landed Cost

Product Cost: This is the base price of your goods. It is what you pay your supplier.

Shipping Cost: The cost to transport goods from supplier to destination. It includes freight charges. It includes fuel surcharges. It includes carrier fees.

Insurance: Protects your shipment against damage or loss. It is usually a percentage of the product value.

Customs Duty: A tax imposed by governments on imported goods. Rates vary by product type and country of origin.

Taxes: Includes sales tax, VAT, or GST. Applied to the total value of goods plus duties.

Handling Fees: Charges for port handling. Includes warehouse storage fees. Includes brokerage fees for customs clearance.

How to Use This Landed Cost Calculator

Our calculator is simple to use. Enter your product cost. Add shipping expenses. Include insurance if applicable. Enter customs duty percentage. Add your local tax rate. Include any handling fees. Click “Calculate Landed Cost”. Get instant results.

This tool helps importers. It helps e-commerce businesses. It helps logistics managers. It helps small business owners. Anyone involved in international trade can benefit.

Benefits of Calculating Landed Cost

You set accurate selling prices. You avoid unexpected costs. You improve profit margins. You make better sourcing decisions. You budget more effectively. You remain competitive in pricing.

Use our calculator regularly. Update it as costs change. Share it with your team. Make it part of your purchasing process.