Calculation methodology

How ImportMetric
calculates results.

A plain-language reference for the formulas, assumptions and limits behind the calculators.

01

Transparent planning formulas, with assumptions disclosed where they matter.

The tools are designed for planning and comparison. Customs valuation, tariff classification, taxes, fees and commercial terms can vary by country, product and shipment. Verify material decisions with the relevant official source or qualified professional.

1. General approach

Each calculator is designed to answer one narrow sourcing question. Inputs are entered by the user, formulas are applied in the browser, and the result is shown immediately. ImportMetric does not automatically fetch live tariff rates, freight rates, exchange rates or marketplace fees unless a page explicitly says otherwise.

2. Landed cost

The general landed-cost model adds the direct costs required to move the goods to the destination used in the calculation.

Total Landed Cost = Product Cost + Origin Transport + International Freight + Insurance + Estimated Duty + Customs/Clearance + Destination Delivery + Other Direct Import Costs

Landed Cost per Unit = Total Landed Cost / Quantity

The exact cost stack depends on the Incoterm and the destination point. EXW, FOB, CIF and DDP pages therefore expose different input fields even though the final goal is similar.

3. Duty estimates

Duty tools require the user to provide the rate. ImportMetric does not determine the legal tariff classification. Where a simplified duty base is used, the page states the formula directly. For example, some planning pages use product value plus international freight and insurance as a working base.

This assumption is intentionally disclosed because actual customs valuation can differ by jurisdiction and transaction.

4. Profit margin and markup

Profit per Unit = Selling Price - Total Entered Cost per Unit

Profit Margin = Profit per Unit / Selling Price × 100

Markup = Profit per Unit / Cost per Unit × 100

Margin and markup are not interchangeable because they use different denominators.

5. Break-even and target selling price

When a selling fee is charged as a percentage of the final selling price, the price cannot be found by simply adding the fee percentage to cost.

Break-even Price = Fixed Unit Cost / (1 - Selling Fee Rate)

Target Selling Price = Fixed Unit Cost / (1 - Selling Fee Rate - Target Margin)

If fee rate plus target margin reaches or exceeds 100%, the formula cannot produce a usable positive price because nothing remains to cover fixed cost.

6. Maximum purchase price

The maximum-purchase-price tool works backwards from the intended selling price. It subtracts target profit and the entered non-supplier costs to estimate the supplier-price ceiling consistent with those assumptions.

7. MOQ and inventory coverage

Months of Cover = Available Inventory / Expected Monthly Sales

Target Purchase Quantity = Expected Monthly Sales × Target Coverage - Current Inventory

Lead-time Demand = Expected Monthly Sales × Lead Time Days / 30

These are planning estimates, not demand forecasts. Seasonality, promotions and stockouts can make actual sales differ materially from the entered assumption.

8. Rounding and currency

Most displayed currency values are rounded to two decimal places for readability. Internal calculations may use greater precision before display. Currency selection changes formatting only unless a page explicitly performs conversion; the current core tools do not automatically convert exchange rates.

9. Worked examples and updates

Guide examples are designed to show how formulas work with concrete numbers. When a formula, field or assumption changes materially, related explanatory content should be updated so the page and calculator remain consistent.

If you find an inconsistency, use the Contact page and identify the calculator, inputs and expected result.