Landed Cost Calculator

Landed cost is the total cost of a product once it arrives at your door, including the purchase price, freight, customs duties, taxes, insurance, currency conversion fees, and any other charges incurred along the way. Knowing your true landed cost is critical for setting profitable retail prices.

The FOB (Free on Board) price is the supplier's price at the port of origin. From there, costs stack up: international freight (ocean, air, or express), marine cargo insurance (typically 1-2% of goods value), customs duties based on the product's HTS code, and broker fees for customs clearance. Many importers are surprised to find that landed cost can be 20-40% above the FOB price.

Customs duty rates vary enormously by product category and country of origin. The Harmonized Tariff Schedule (HTS) assigns specific duty rates to every product classification. Some goods enter duty-free under trade agreements, while others carry rates exceeding 25%. Always look up the correct HTS code for your product before estimating costs.

To reduce landed costs, consider consolidating shipments to spread fixed costs (broker fees, container charges) across more units, negotiating better freight rates with volume commitments, exploring free trade zones, and ensuring your HTS classification is optimized. Even small percentage savings on duty rates can translate to significant savings at scale.