Total Landed Cost Calculator
Calculate the true cost of imported goods including product cost, freight, import duties, insurance, and handling fees — and see cost per unit.
Results
What is it?
Total Landed Cost (TLC) is the complete cost of getting a product from the supplier to your warehouse, ready to sell or use. It includes: product cost + freight + import duties + cargo insurance + customs broker and handling fees. Many buyers compare suppliers on ex-works price alone and are surprised when landed cost is 20-40% higher. TLC is essential for accurate margin calculations, supplier comparisons across countries, and pricing decisions.
How to use
Enter your supplier cost (ex-works), freight cost, import duty rate for your product HS code, cargo insurance rate, handling and clearance fees, and the total number of units. The calculator computes total landed cost, cost per unit, and the percentage markup over product cost alone. Duties are calculated on the CIF value (product + freight), which is standard for most countries.
Example scenario
Product: $5,000. Freight: $800. Duty: 5% of $5,800 = $290. Insurance: 0.5% of $5,800 = $29. Handling: $150. Total landed = $6,269. For 100 units: $62.69 per unit — 25.4% above the $50 ex-works cost per unit. A retail price of $80 yields a margin of 21.6% on landed cost, not the 37.5% it appeared at ex-works.
Pro tip
Always build TLC models before committing to a new supplier. A cheaper ex-works price from a more distant country (e.g., Bangladesh vs. China) can result in a higher TLC due to longer transit times, higher freight costs, and different duty rates. Use TLC to compare suppliers on a true apples-to-apples basis. Also factor in time cost of capital: longer transit means more working capital tied up in transit inventory.