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The short version
- Landed cost is what one unit really costs by the time it reaches you: product, shipping, duties, taxes and fees.
- It's almost always well above the supplier's price. In our example, a $4.20 product lands at $6.38, about 52% more.
- Price your product from landed cost, never from the factory price.
- Duty rates on goods from China change often. Check the current rate for your exact product before you order.
What is landed cost?
Landed cost is the total cost of getting a product from the supplier to your door, divided by the number of units. It includes the product itself and everything you pay to move it and bring it into the country. If you only use the supplier's price, you'll underprice and lose money on every sale.
What goes into landed cost
| Cost | What it covers | Where to find it |
|---|---|---|
| Product cost | The supplier's price on your Incoterm (EXW, FOB and so on) | Supplier quote or proforma invoice |
| Shipping | Freight plus origin and destination charges, and delivery to you | Forwarder or courier quote |
| Insurance | Cargo insurance for the part of the trip where risk is yours | Forwarder or insurer |
| Duties and tariffs | Import duty on the customs value, based on the product's tariff code | Your country's tariff schedule or customs broker |
| Import taxes | Sales taxes charged at the border, like GST in Canada or VAT in the UK and EU | Your customs authority |
| Customs and broker fees | Customs entry, brokerage and any processing fees | Customs broker or courier |
| Payment and bank fees | Wire fees, card fees, Trade Assurance fees, currency conversion | Your bank or payment platform |
| Other | Samples, inspection, labeling, prep or warehouse receiving | Each provider |
How to calculate landed cost, step by step
- Get the product cost on a clear IncotermFOB is easiest to work with. If the quote is EXW, add the origin trucking, export clearance and port charges.
- Get a shipping quote to your doorAsk your forwarder for an all-in quote from the port (or factory) to your warehouse, and whether destination charges are included.
- Find your product's tariff code and duty rateLook up the HS or HTS code for your product in your country's tariff schedule, or ask a customs broker. Include any extra tariffs on goods from China.
- Work out the dutyDuty = customs value × duty rate. The customs value is usually the price you paid for the goods, and depending on the country may also include freight and insurance.
- Add taxes and feesImport taxes you can't recover, broker fees, customs processing fees and payment fees.
- Divide by the number of unitsThat's your landed cost per unit. Use it for pricing and margin, not the supplier's price.
Worked example
This is an illustrative example with made-up but realistic numbers. It's not a quote, and the duty rate is a placeholder.
You order 500 units at $4.20 FOB, shipped by sea. Your forwarder quotes $650 to your door, insurance is $15, your broker charges $150, the duty rate is 10% on the goods, and your payment method costs 3%.
| Cost | Whole order | Per unit | Share |
|---|---|---|---|
| Product (FOB) | $2,100.00 | $4.20 | 66% |
| Freight to your door | $650.00 | $1.30 | 20% |
| Duty | $210.00 | $0.42 | 7% |
| Broker | $150.00 | $0.30 | 5% |
| Payment fees | $63.00 | $0.13 | 2% |
| Insurance | $15.00 | $0.03 | 0% |
| Landed cost | $3,188.00 | $6.38 | 100% |
Illustrative example of 500 units. The 10% duty rate is a placeholder, not the rate for any real product. Import taxes like Canada's GST are left out because registered businesses can usually recover them.
Your landed cost is $6.38 per unit. If you planned to sell at $12 using the $4.20 price, you'd think you had a big margin. After landing, and before selling fees, advertising and returns, it's much tighter.
Open this exact example in the free calculator, then swap in your own quote, freight and duty rate. It runs right in your browser.
Open this example in the calculatorDuties and tariffs on goods from China
United States
Duty starts with the base rate for your product's code in the Harmonized Tariff Schedule. Goods made in China can also face additional tariffs on top, and these have changed many times since 2018, including several times in 2025 and 2026. Check the current total rate for your exact product with a customs broker, or on CBP's and the USITC's official sites, before you place an order.
The US suspended the de minimis exemption for all countries on August 29, 2025, and it was still suspended as of September 2026. Low-value shipments that used to enter duty-free now pay duties, so small test orders need a landed cost calculation too.
Canada
Duty depends on your product's tariff classification and where it was made, and the GST (plus provincial tax in some provinces) is charged on the value of the goods plus the duty. GST-registered businesses can usually claim the GST back as an input tax credit, so it's a cash flow cost more than a real cost. The CBSA's importing pages walk through each step.
Everywhere else
Most countries follow the same pattern: find the tariff code, apply the duty rate to the customs value, then add import VAT or GST and fees. Your customs broker or courier can confirm the rate before you ship.
Common landed cost mistakes
- Using the supplier's price as your cost of goods.
- Forgetting destination charges, which can be a big part of the freight bill on small shipments.
- Comparing EXW and FOB quotes without adding origin charges to the EXW one.
- Assuming last year's duty rate still applies. Check it for every order.
- Ignoring currency. A 5% move in the exchange rate changes your cost by about 5%.
- Spreading costs evenly across products of very different sizes. Allocate freight by volume or weight instead.
Price every product from its real cost
The Pricing & Landed Cost Calculator works out landed cost per unit with freight allocation, duties, fees and currency conversion, then gives you the selling price for your target margin on Amazon, Etsy, Shopify or wholesale.
Frequently asked questions
What is landed cost?
The total cost of a product once it has arrived at your door: the product price plus shipping, insurance, duties, import taxes you can't recover, and fees, divided by the number of units.
How do you calculate landed cost per unit?
Add up the product cost, freight to your door, insurance, duties, unrecoverable taxes, broker and customs fees and payment fees for the whole order, then divide by the number of units.
Is landed cost the same as COGS?
Landed cost is usually the main part of your cost of goods sold for imported products. COGS can also include things like packaging, labeling and inbound shipping to a warehouse or Amazon.
How do I find the duty rate for my product?
Find your product's tariff code (HS code, or HTS code in the US) in your country's tariff schedule, or ask a customs broker. For goods from China, also check whether any additional tariffs apply.
Does landed cost include GST or VAT?
Include import taxes you can't recover. If your business is registered and can claim them back, most importers leave them out of landed cost but plan for the cash flow.
Is there still a de minimis exemption in the US?
Not as of September 2026. The US suspended duty-free de minimis treatment for all countries on August 29, 2025, so low-value shipments pay applicable duties.
The worked example is illustrative and uses a placeholder duty rate. Duty and tariff rates change often and depend on your product's classification and origin. Tariff and de minimis status is as of September 2026. This guide is general information, not customs, tax or legal advice. Confirm rates with a licensed customs broker or your customs authority.