Landed Cost Calculator

What is landed cost? Landed cost is the true total per-unit cost of getting a product from the factory floor to your warehouse shelf, ready to sell — manufacturing cost plus international freight, customs duties, insurance, packaging materials, and any inspection or quality control fees. For brands sourcing from overseas, landed cost is typically 30 to 60% higher than the FOB manufacturing price, and failing to account for these costs leads to inaccurate margin calculations and mispriced products.

This calculator breaks down every component of landed cost on a per-unit basis and shows each as a percentage of the total. The breakdown reveals which cost components have the most impact — for most brands, manufacturing and freight are the two largest, but duty rates can add significantly depending on the product category and country of origin.

The cost versus manufacturing price metric shows the premium you pay on top of FOB price to actually receive the goods. A 45% premium means your $8.50 per unit product actually costs $12.33 by the time it reaches your warehouse. This is the number that should go into your contribution margin and product pricing calculations — not the manufacturing cost alone.

To reduce landed cost, focus on the largest line items first. Negotiate freight rates by consolidating shipments or using a freight forwarder. Explore duty reduction through free trade agreements, foreign trade zones, or tariff engineering. Optimize packaging to reduce weight and dimensional shipping costs. And always calculate landed cost before placing an order — not after the invoice arrives — so you can make informed decisions about order quantities, shipping methods, and whether a product is viable at your target retail price.