Total Landed Cost Calculator

How to think about total landed cost

Total landed cost is the true cost of bringing product into your facility or network. It extends beyond the supplier’s unit price by including the logistics and handling costs required to move and receive the goods. This is a critical metric for sourcing decisions, margin analysis, and pricing because the unit price alone rarely reflects the full cost of ownership.

In this calculator, the base goods value is the unit price multiplied by quantity. The additional fee inputs capture common cost drivers such as freight, insurance, handling, and packaging. Warehousing per unit is included as an optional variable to represent inbound storage or receiving costs that scale with quantity. Other fees can be used for inspection, documentation, consolidation, or miscellaneous charges.

The output provides both total landed cost and landed cost per unit. The per-unit view is especially helpful when comparing suppliers or transportation options because it normalizes costs across different lot sizes. For example, a supplier with a lower unit price might still have a higher landed cost per unit if freight or handling fees are higher. Conversely, consolidating shipments might increase total freight but reduce cost per unit.

This tool intentionally avoids automated customs or tax calculations. Those costs vary by jurisdiction and product classification, so the safest approach is to input them manually as part of “other fees.” That keeps the calculator simple and transparent while still allowing you to capture real costs.

Use total landed cost for procurement reviews, make-or-buy decisions, and pricing analysis. It is also useful for inventory valuation when you want a more complete picture of incoming costs. All calculations run locally in your browser, so sensitive cost data stays private.

Formula

Goods value: Unit Price × Quantity

Total landed cost: Goods Value + Freight + Insurance + Handling + Packaging + Other Fees + (Warehousing × Quantity)

Landed cost per unit: Total Landed Cost ÷ Quantity

Example calculation

If unit price is $12.50 and quantity is 2,000, goods value is $25,000. Add $1,800 freight, $250 insurance, $400 handling, $300 packaging, $250 other fees, and $0.40 warehousing per unit (0.40 × 2,000 = $800). Total landed cost becomes $28,800. Landed cost per unit is $28,800 ÷ 2,000 = $14.40.

FAQs

Should I include inbound duties in other fees?

Yes. Enter duties, taxes, or brokerage charges as manual “other fees” if they apply.

Is packaging per unit or total?

Packaging is modeled as a total fee. If it is per unit, multiply by quantity and enter the total.

What if my freight is per unit?

Multiply the per-unit freight by quantity and enter it as a total freight cost.

Does this include inventory carrying cost?

No. Carrying costs depend on time and capital rates, which are outside this calculation.

Is this calculator private?

Yes. All calculations run locally in your browser.

How it works

This calculator sums purchase price and fees, then divides by quantity for per-unit landed cost. All computation is client-side for privacy.

Disclaimer

This calculator is for planning and comparison. Always validate landed cost assumptions with your logistics and finance teams.