Quick answer
Calculate the complete order cost, then divide by quantity.
Define the destination first, then add every direct cost required to get the goods there. ImportMetric V1 treats this as a planning estimate, not a universal customs rule.
Duty and tax treatment varies by product and destination. Verify actual customs treatment before committing to an order.
Worked import example
One shipment, shown end to end.
This uses the same planning example as the ImportMetric Landed Cost Calculator: USD, 1,000 units and FOB terms.
- Product cost
- $8,400
- Quantity
- 1,000 units
- Origin transport
- $180
- International freight
- $620
- Insurance
- $65
- Duty rate
- 6.5%
- Customs / clearance
- $145
- Destination delivery
- $230
- Other costs
- $55
- Duty base
- $9,085.00
- Import duty
- $590.53
- Logistics cost
- $1,095.00
- Non-product cost
- $1,885.53
- Non-product cost %
- 18.33%
- Total landed cost
- $10,285.53
- Landed cost / unit
- $10.29
ImportMetric V1 estimates duty using Product Cost + International Freight + Insurance: $8,400 + $620 + $65 = $9,085. The 6.5% estimate produces $590.53. This is a disclosed planning assumption, not a universal customs rule.
Read the result correctly
Supplier price vs landed cost
The supplier price in this example is $8.40 per unit. The estimated landed cost is $10.29 per unit. The difference is approximately $1.89 per unit, representing the non-product costs in this scenario.
That gap is useful for comparing supplier economics, planning margin and reviewing the purchase order. It is still an estimate: actual charges, classification, destination rules and commercial terms can change the final result.
Build the cost stack
What costs belong in landed cost?
Product / purchase cost
The supplier invoice value for the goods, including directly attributable packaging, tooling or setup charges where appropriate.
Origin transport
Inland movement and origin handling needed to move goods from the supplier to the export or shipping point.
International freight and insurance
The main transport cost and the insurance cost used to protect the shipment while it is moving.
Duty and customs
Import duty, customs clearance, broker or documentation fees and other border charges. The basis and treatment vary by jurisdiction.
Destination delivery and other direct import costs
Delivery to the defined destination plus inspection, storage before receipt or other direct import charges. Selling-channel costs such as advertising, marketplace commissions and customer acquisition are normally evaluated separately in selling economics.
Calculate your maximum supplier priceA practical method
Five steps to a usable landed cost
Define the destination of your calculation
“Landed” needs a defined destination: port, warehouse, fulfillment center or another handoff point. Include costs consistently up to that point.
Start with the complete supplier cost
Multiply unit price by quantity and include directly attributable packaging, tooling, setup and supplier-side charges. An incomplete purchase cost creates a misleading result.
Add freight and insurance
Include origin transport, international freight, insurance and destination transport. Freight quotes may not contain every destination or handling charge.
Estimate duty and customs costs carefully
Duty basis and tax treatment vary by jurisdiction, product classification and destination. ImportMetric V1 uses a clearly disclosed planning assumption; verify actual treatment with the relevant customs authority, broker or qualified professional.
Divide the complete order cost by quantity
$10,285.53 / 1,000 = $10.28553, approximately $10.29 per unit. This per-unit number helps compare supplier economics, set prices, plan margin and review purchase decisions.
Calculate Your Landed CostCommon mistakes
Where landed cost calculations go wrong
Common errors include treating supplier unit price as total cost, forgetting destination or local charges, comparing different Incoterms as if they were equivalent, using an unverified duty assumption, forgetting fixed clearance charges, dividing by the wrong quantity, or mixing marketplace and selling costs into import costs without a clear model.
Before you commit
Landed cost checklist
A decision before cash is committed
Calculate the order before you commit cash.
No account required. The calculation runs in your browser.
Calculate Your Landed CostFrom landed cost to a sourcing decision
Connect the numbers before you order.
ImportMetric connects the review into a practical sequence:
- Compare Supplier Quotes
- Calculate Landed Cost
- Set Your Price Ceiling
- Check MOQ Risk
- Review everything in Import Decision Report
FAQ
Questions import teams ask
What is landed cost per unit?
Landed cost per unit is the total estimated cost of an imported order, including product and direct import costs, divided by the order quantity.
What costs should be included in landed cost?
Include product cost, origin transport, international freight, insurance, import duty, customs or clearance fees, destination delivery and other direct import costs.
Is freight included in landed cost?
Yes. International freight and relevant origin or destination transport should be included when they are direct costs required to move the goods to the defined destination.
How do Incoterms affect landed cost?
Incoterms describe how commercial responsibilities and costs are commonly allocated, so quotes using different terms may require different additional cost estimates before comparison.
Is landed cost the same as product cost?
No. Product cost is the supplier purchase amount. Landed cost adds the direct freight, insurance, duty, customs, delivery and other import costs needed to reach the defined destination.