Landed Cost Calculator
Calculate the true landed cost per unit for imported goods including factory purchase price, ocean/air freight, insurance, tariffs, and port handling.
Total Landed Cost Formula
Landed Cost = Factory Purchase + Freight + Cargo Insurance + Customs Duties + Brokerage Fees + Port Handling; Unit Cost = Landed Cost / Units- Original Unit Cost: Factory invoice FOB price per unit.
- Logistics Overhead: All transportation, customs brokerage, tariffs, and terminal handling charges.
- Landed Cost Multiplier: Ratio of final delivered landed cost to original factory cost.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes all units incur identical proportional logistics overhead.
- Excludes domestic warehousing storage beyond initial port release.
Frequently Asked Questions
Why is calculating landed cost vital for consumer businesses?
Failing to track landed cost can cause retailers to set selling prices based solely on factory purchase price, accidentally wiping out profit margins or operating at a net loss once freight, tariffs, and handling arrive.
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