Landed Cost Calculator

Model total international shipment expenditure from overseas origin to destination warehouse. Calculate customs duties across FOB and CIF valuation standards, assess freight and port fee impacts, and evaluate per-unit commercial gross margins.

Landed Cost & Margin Calculator

Model total import expenditure, assess international customs valuation methods (FOB vs CIF), and compute gross margins per unit.

Quick Presets:

1. Shipment & Cost Inputs

Product or consignment reference name.

Base calculation currency.

Number of commercial units (e.g. kg, pieces, cartons).

Invoice price paid to overseas supplier.

Ocean or air transport charge from origin port to destination.

Marine cargo insurance premium covering the voyage.

2. Customs Duty & Regulatory Valuation

Jurisdictions assess customs value differently. United States CBP uses FOB transaction value; the European Union, UK, and most WTO nations use CIF value.

Applicable tariff percentage (e.g. 0% for green coffee in US; 5.5% for instant coffee).

Terminal handling (THC), customs broker entry fee, inland drayage.

3. Commercial Sales & Margin (Optional)

Intended wholesale or retail revenue per unit to evaluate gross margin.

Landed Cost Assessment

FOB Basis
Total Landed Cost$73,400.00USD All-In
Landed Cost Per Unit$3.82per commercial unit
Cost ComponentAmountShare
Goods Purchase Cost$68,000.0092.6%
International Freight$3,800.005.2%
Cargo Marine Insurance$350.000.5%
Customs Duty(0.00% on $68,000.00)$0.000.0%
Destination & Local Fees$1,250.001.7%
Total Estimated Landed Cost$73,400.00100.0%
Cost Distribution:
GoodsFreightInsuranceDutyPort/Other

Revenue & Gross Margin Projection

Projected Revenue$99,840.00
Gross Profit$26,440.00
Gross Margin26.5%
Markup on Cost36.0%

Customs duties are estimated on either FOB or CIF valuation rules. This tool does not account for local VAT/GST recovery, anti-dumping duties, or customs physical inspection fees. Always verify binding tariff classifications with a licensed customs broker.

Customs Valuation & Calculation Methodology

Selecting the Correct Customs Duty Basis

Customs duty calculation rules vary fundamentally depending on the destination jurisdiction:

  • FOB Basis (United States / CBP Standard): US Customs and Border Protection (CBP) calculates import duty on the FOB transaction value of the merchandise only, excluding ocean freight and marine cargo insurance under 19 CFR Part 152.
  • CIF Basis (European Union, UK, Canada, Australia, and WTO Members): These jurisdictions calculate customs duty on the CIF value (Cost, Insurance, and Freight). Under CIF rules, higher shipping freight rates directly increase your duty liability.

Customs Compliance Notice: This calculator provides an educational baseline estimate based on the ad valorem tariff percentage you enter. It does not automatically query harmonized tariff schedules, anti-dumping orders, or preferential trade agreements. Always confirm final HS Codes and duty exemptions with a licensed customs broker or national customs authority.

Excluded Cost Variables

Several destination-specific fees are excluded from this baseline calculation:

  • Value-Added Tax (VAT) / GST: Import VAT is often recoverable as an input tax credit by registered commercial entities and is not modelled as a direct cost of goods sold.
  • Trade Remedy Tariffs: Special anti-dumping duties, countervailing duties, or Section 301 tariffs should be added into the ad valorem rate if applicable.
  • Demurrage and Detention: Storage and container detention fees caused by customs examination delays are variable and excluded.

Gross Margin Evaluation

The commercial margin panel calculates gross profit margin before selling expenses, marketplace transaction commissions, payment processing fees, and operating overhead.