Starlight Tools

Landed Cost Calculator: Import Duty, Tax & Cost Per Unit

Calculate a complete import landed cost covering product cost, freight, insurance, customs duty, VAT/GST, brokerage, clearance, currency conversion, and delivery—then see the true cost per unit and pricing margin.

Planning estimate • Calculations run locally in your browser • Last reviewed: 15 July 2026

Scenario A inputs

Enter every amount in the selected reporting currency. Blank optional fields count as zero.

All scenarios use this currency.
1. Product
Total sellable units in this shipment.
Example: enter 10 per unit or 10,000 total. Check whether the supplier's Incoterm already includes freight or import fees.
2. Freight and insurance
Main carriage; do not add it again if included in a CIF/CIP or DDP quote.
Enter the shipment premium or its per-unit allocation.
Use zero if already included in product cost.
Use only costs needed to receive this shipment.
Include bank fees and exchange-rate spread after converting all inputs to one currency.
3. Duties and taxes
Choose a tariff rate or enter a known fixed shipment duty.
Verify the HS-code rate and origin treatment for the destination.
CIF is a planning default, not a universal customs rule.
Enter zero if no import tax applies or if you want a pre-tax landed cost.
Jurisdictions may also include other taxes or charges; verify locally.
4. Destination fees
5. Margin analysis (optional)
Used to calculate gross profit, gross margin, and markup.
Must be below 100%; used to calculate a minimum selling price.
6. Compare Scenario B (optional)
Compare total, per-unit, added-cost, and target-margin outcomes side by side.
Enter product cost and quantity, then calculate.

Scenario A results

Total landed cost:—
Landed cost per unit:—

Complete the required fields to calculate.

Margin analysis

Gross profit per unit:—
Expected gross profit (shipment):—
Gross margin:—
Markup:—
Minimum price at target margin:—

Calculation methodology and assumptions

This is an estimate, not an official customs assessment. The default method applies duty to CIF (goods + international freight + insurance), then applies VAT/GST/import tax to CIF + duty. Customs valuation and tax bases vary by destination, product, origin, Incoterm, assists, royalties, and local rules. Use the advanced base selectors when your jurisdiction differs and verify every rate and base.
  1. Convert all amounts to one reporting currency, then calculate goods value from the selected per-unit or shipment-total basis.
  2. Calculate CIF and the selected customs value. Apply either the duty rate to that base or use the entered fixed duty.
  3. Build the selected import-tax base and apply the VAT/GST/import-tax rate separately.
  4. Add product, logistics, duty, import tax, and destination components once; divide by sellable quantity.
  5. For pricing, gross margin is (selling price − landed cost per unit) ÷ selling price, markup is gross profit ÷ landed cost per unit, and target price is landed cost per unit ÷ (1 − target margin).

Rate verification: search the destination's official tariff using the product's HS code. Useful official sources include the US Harmonized Tariff Schedule, UK Integrated Online Tariff, and EU Access2Markets. A customs broker can confirm classification and special measures.

Assumptions: positive sellable quantity; non-negative costs; percentage duties are ad valorem; no preferential origin, anti-dumping duty, excise, de minimis threshold, or recoverability treatment is inferred. Published by Starlight Robotics and reviewed by the Starlight Tools editorial team on 15 July 2026; no qualified customs reviewer is claimed.

Worked international import example

The “Load example” preset uses 1,000 units at $10 each, $1,200 freight, $100 insurance, 5% duty on CIF, 20% import tax on CIF + duty, $550 of destination fees, and $50 of currency-conversion cost. The arithmetic exactly matches Scenario A:

StepCalculationAmount
Goods value1,000 × $10.00$10,000.00
CIF / customs value$10,000 + $1,200 + $100$11,300.00
Customs duty$11,300 × 5%$565.00
Import-tax base$11,300 + $565$11,865.00
VAT/GST/import tax$11,865 × 20%$2,373.00
Other import costs$150 brokerage + $100 clearance + $300 delivery + $50 conversion$600.00
Total landed cost$10,000 + $1,200 + $100 + $565 + $2,373 + $600$14,838.00
Landed cost per unit$14,838 ÷ 1,000$14.8380

Incoterms: avoid counting included costs twice

Incoterms allocate delivery tasks, cost, and risk; the sales contract and named place still matter. Use this as a quote-checking prompt, not a substitute for the current ICC rules.

TermSupplier quote may includeBuyer commonly still adds
EXWGoods available at the seller's premises.Origin pickup/export handling, freight, insurance, import duty/tax, clearance, and delivery.
FOBGoods and origin costs through loading aboard the vessel at the named port.Main freight, insurance, destination charges, duty/tax, clearance, and inland delivery.
CIF / CIPGoods, main carriage, and specified insurance to the named destination/port.Import duty/tax, clearance, destination handling, and onward delivery unless the contract says otherwise.
DDPDelivery to the named place and generally import formalities/duties.Confirm VAT treatment, unloading, and any excluded local costs before entering extra fees.

Landed-cost checklist and common mistakes

Costs commonly missed

  • Brokerage, bonds, disbursement, and customs-entry fees
  • Port storage, demurrage, detention, and terminal handling
  • Inspection, testing, certification, labeling, and compliance
  • Payment fees, currency conversion, and exchange-rate spread
  • Inland or last-mile delivery, receiving, and export packaging

Before calculating

  • Confirm the quote currency, quantity, named place, and Incoterm
  • Classify the goods and verify origin, duty, taxes, and special measures
  • Separate per-unit prices from shipment totals
  • Decide whether recoverable import VAT is a cash-flow item or product cost
  • Use expected sellable units after normal damage or rejects

Allocation guidance

Allocate a shared charge using its cost driver: freight by chargeable weight or volume, insurance and value-related fees by goods value, handling by units or lines, and fixed entry fees consistently across SKUs. Document the rule so scenarios remain comparable.

Common mistakes

Do not double count freight or duty already included under the supplier's Incoterm, apply tax to the wrong base, omit currency spreads, mix currencies, or compare different shipment quantities using totals alone.

Frequently asked questions

What costs belong in landed cost?

Include the supplier price and every cost needed to place the goods at their usable destination: packaging, freight, insurance, duty, import VAT/GST or other non-recoverable tax, brokerage, clearance, port charges, inspection, currency conversion, and inland delivery. Check the Incoterm first so a cost already included in the quote is not counted twice.

How do I find the correct HS-code duty rate?

Classify the product under the destination country's tariff, then verify the rate, origin rules, trade remedies, and any preference with the official customs authority or a licensed customs broker. A supplier's HS code is a useful starting point, but the importer remains responsible for the destination classification.

What is the difference between customs duty and VAT/GST?

Duty is normally a border charge tied to product classification, origin, and customs value. Import VAT/GST is a consumption tax calculated on a jurisdiction-defined base that often includes customs value and duty. They are separate amounts and may use different rates and bases.

Should recoverable import VAT be included in product cost?

Usually not in long-term product margin if the business can fully reclaim it, although it still affects cash flow. Include irrecoverable VAT/GST in landed cost; otherwise calculate it for the broker payment and remove it from the accounting cost after confirming treatment with a tax professional.

How do FOB, CIF and DDP change the calculation?

FOB commonly includes costs through loading at the origin port, while the buyer usually adds main freight, insurance, import charges, and delivery. CIF adds main freight and insurance to the named port, but usually not import clearance, duty, tax, or inland delivery. DDP generally puts most delivery and import obligations on the seller, so confirm the quote before adding them again.

How should I handle costs in multiple currencies?

Convert every input to the selected reporting currency using the rate expected on the payment or customs date. Add bank fees and the exchange-rate spread as currency-conversion cost, and use the customs authority's prescribed exchange rate where required for customs value.

How do I allocate shared freight across multiple SKUs?

Allocate shared freight using the driver that best reflects the charge: weight for weight-rated freight, volume for cubic freight, units for identical items, or customs value for value-related charges. Calculate each SKU's share first, then enter that shipment total or per-unit amount consistently.

Why can the customs broker invoice exceed this estimate?

Broker invoices may add disbursement fees, bond or guarantee costs, storage, demurrage, examinations, agency fees, tariff changes, customs exchange-rate differences, anti-dumping duties, or tax assessed on a different base. Use the estimate for planning and reconcile it against the entry documents.

Important limitation

This calculator provides a planning estimate from the assumptions you enter. It does not classify goods, retrieve live tariff data, determine origin, or issue a customs assessment. Verify rates, valuation, tax recoverability, Incoterm coverage, and exceptional duties with the destination customs authority, a licensed customs broker, and your tax adviser before purchasing or pricing goods.

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