Go beyond FOB price. Calculate the total cost to get your product from factory floor to warehouse shelf, including duties, freight, insurance, and handling fees.
Many e-commerce sellers set their retail prices based on the FOB price from their supplier, only to discover that duties, freight, and fees add 25-50% on top. A product that looks profitable at $5 FOB may cost $7.50 landed, turning a healthy 40% margin into a break-even proposition. Calculating landed cost before committing to a product or price point prevents this margin trap.
Product cost (FOB or EXW), international freight (ocean LCL/FCL or air), cargo insurance (typically 0.3-0.5% of CIF value), customs duties and tariffs (varies by HS code and country of origin), merchandise processing fee (0.3464% for most entries), harbor maintenance fee (0.125% for ocean shipments), customs broker fee ($150-$300 per entry), and inland freight to your warehouse. Each component matters and our calculator captures them all.
The largest lever for reducing landed cost is usually the tariff component. Strategies include sourcing from countries with lower duty rates, qualifying for free trade agreements like USMCA, applying for duty drawback on re-exported goods, and using Foreign Trade Zones. Our calculator lets you model each scenario so you can quantify the savings before making changes.
Landed cost includes the product purchase price (FOB), international freight, marine or air cargo insurance, customs duties and tariffs, customs broker fees, port handling charges, and inland transportation to your warehouse. Our calculator lets you input each component or use default estimates based on your shipping lane.
Divide your total landed cost by the number of units in your shipment. Our calculator does this automatically. For example, if your total landed cost for a 1,000-unit shipment is $15,000, your per-unit landed cost is $15.00. This is the number you should use for pricing and margin calculations.
FOB (Free on Board) is the price you pay the supplier at the port of origin. Landed cost is the FOB price plus every expense incurred to get the goods to your warehouse: ocean freight, insurance, customs duties, broker fees, and domestic trucking. Landed cost is always higher than FOB and is the true cost basis for your pricing decisions.
Yes. Create a free MarginHub account to save unlimited calculations, compare them side by side, and receive alerts when tariff rate changes affect your saved products. You can also export results as CSV or PDF.
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