Landed Cost Calculator


About Landed Cost Calculator (Formula)

A Landed Cost Calculator is a tool used by businesses involved in importing and exporting goods to calculate the total cost of acquiring and transporting products, including all associated expenses. This calculator helps companies accurately assess the overall cost of goods from the supplier’s location to their final destination, considering various factors such as transportation, customs, taxes, and fees.

The formula for calculating landed cost involves summing up all costs associated with the procurement and transportation of goods:

Landed Cost = Cost of Goods + Freight Costs + Customs Duties + Taxes + Handling Fees + Other Expenses


  • Landed Cost is the total cost incurred to acquire and transport goods to their final destination.
  • Cost of Goods is the purchase price of the goods from the supplier.
  • Freight Costs include shipping, transportation, and logistics expenses.
  • Customs Duties are taxes imposed by customs authorities on imported goods.
  • Taxes include any applicable import taxes, VAT, or other duties.
  • Handling Fees cover administrative and processing costs associated with customs clearance.
  • Other Expenses may include insurance, storage, and other miscellaneous costs.

To use the Landed Cost Calculator formula, follow these steps:

  1. Determine the cost of goods purchased from the supplier.
  2. Calculate the freight costs, including shipping and transportation expenses.
  3. Determine the customs duties, taxes, handling fees, and any other associated expenses.
  4. Sum up all the costs to calculate the landed cost: Landed Cost = Cost of Goods + Freight Costs + Customs Duties + Taxes + Handling Fees + Other Expenses.
  5. Calculate the landed cost. The result provides the comprehensive cost of acquiring and transporting the goods to their final destination.

Landed cost calculations are crucial for businesses to make informed decisions about pricing, profit margins, and sourcing strategies. By accurately calculating the total cost, companies can ensure that their selling prices cover all expenses and help maintain profitability.

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