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Landed Cost Per Unit Calculator

Updated .

Your supplier's quoted unit price is not what a product costs you. This calculator adds freight, duty, insurance, brokerage, and domestic delivery to find the true landed cost per unit your margins actually depend on, and the gross margin it leaves at your retail price.

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    Send me the landed cost breakdown

    Useful when you are comparing supplier quotes or negotiating freight terms.

    How this is calculated

    Landed cost is everything you spend to get a unit into your warehouse and ready to sell. The supplier's unit price is usually the smaller half of the story once freight, duty and clearance are spread across the shipment.

    Duty here is applied to goods value, which reflects the common case where duty is assessed on the declared customs value of the goods. Depending on your incoterms and destination country, freight and insurance may also be included in the dutiable value — if that applies to you, your effective duty will be higher than shown, and your broker can confirm which basis is used.

    The gross margin figure at the bottom is before selling costs. Payment processing, outbound shipping and advertising all come out of it, which is why a landed-cost margin that looks acceptable can still leave nothing at the end.

    Goods value = unit price × units Duty = goods value × duty rate % Total landed = goods + freight + duty + insurance + brokerage + other + domestic Cost per unit = total landed ÷ units Gross margin = (retail − cost per unit) ÷ retail

    Questions merchants ask

    What is landed cost?

    The full cost of getting one unit of inventory into your possession and ready to sell: the product itself plus freight, duty, insurance, customs brokerage, port charges and inland delivery. It is the figure your margin calculations should use, not the supplier's quote.

    How do I find my duty rate?

    It depends on your product's tariff classification code and the country you import into. Your customs broker or freight forwarder can confirm the correct code — guessing it is a common and expensive mistake, since misclassification can trigger penalties as well as back duty.

    Should currency conversion costs be included?

    Yes. The spread your bank or payment provider takes on a foreign currency supplier payment is a real cost of the goods. Enter it under other charges.

    Why does my landed cost per unit change between shipments?

    Because fixed shipment costs like brokerage and freight are divided across however many units you ordered. Smaller orders carry a much higher per-unit landed cost, which is why order quantity should be part of any margin decision.

    Estimates only. Enter your own processing rates and costs — nothing here is pulled from a platform price list, so it stays accurate as fees change.