Enter the supplier unit price
Add the quoted product price for one unit. Make sure you understand whether the price is EXW, FOB, CIF or based on another commercial term so you do not accidentally count or omit costs.
A factory quotation is only one part of an importer's real product cost. Freight, insurance, customs duty, import taxes, clearance, handling and destination charges can materially change the amount ultimately invested in each unit.
Use this calculator to estimate total landed cost and landed cost per piece before comparing suppliers, setting retail prices or placing a purchase order.
Enter the supplier unit price and quantity, then add freight, insurance, duty, taxes and destination charges. The calculator estimates total landed cost and landed cost per unit.
Estimates generated by this calculator are for preliminary planning only. Actual manufacturing cost, finished weight, material consumption, packing, freight, duty, container utilization or other commercial results may vary according to construction, specifications, production method and supplier.
The price printed on a supplier quotation is rarely the complete financial cost of an imported product. An importer may negotiate an attractive factory price and still discover that freight, insurance, customs duty, import taxes, clearance, port handling and local delivery add materially to the cost of every unit.
The Landed Cost Calculator helps buyers bring these different expenses together into one preliminary calculation. Instead of comparing suppliers only on their quoted unit price, the buyer can estimate how much the merchandise may cost after key shipment and import expenses are allocated across the order quantity.
This is particularly useful for importers, wholesalers, retailers, ecommerce brands, sourcing companies, private-label businesses and purchasing teams that need to evaluate margins before committing to production.
The calculation should be treated as a planning model. Actual import charges depend on the product classification, origin, destination country, valuation method, Incoterm, trade arrangements, freight route and customs procedures applicable to the shipment.
Enter your specifications and use the result as a practical starting point for product, sourcing and shipment planning.
Add the quoted product price for one unit. Make sure you understand whether the price is EXW, FOB, CIF or based on another commercial term so you do not accidentally count or omit costs.
Add the number of units included in the shipment. The calculator multiplies quantity by unit price to estimate total goods value.
Enter expected international transport and cargo-insurance costs for the complete shipment.
Add the applicable duty percentage based on the product's tariff classification, origin and destination where known.
Add the relevant import-tax percentage if applicable to your calculation. Tax treatment varies by destination and should be independently confirmed.
Include expected customs brokerage, clearance, port or terminal charges, documentation, handling and local transport that you want included in the estimate.
The calculator combines the entered costs and divides total landed cost by order quantity to produce an estimated cost per imported unit.
The calculator first establishes the goods value from unit price multiplied by quantity. Freight and insurance are added to form a preliminary customs-cost base. Duty is calculated from that base. Import tax is then calculated using the customs base plus estimated duty under this planning model. Other entered charges are added to obtain total landed cost.
See how typical values translate into a useful planning estimate.
A buyer orders 1,000 cushion covers at a factory price of $6.50 each and wants to estimate the impact of freight and other import expenses.
For products with a higher unit price and greater shipping volume, freight and destination charges can make a meaningful difference to landed cost.
Supplier A may offer a lower factory price but ship from a location or under terms that create higher logistics costs. Supplier B may have a slightly higher unit price but a lower overall import cost.
A buyer can include brokerage, port charges, clearance and local delivery in the Other Charges field to create a broader costing estimate.
Landed cost is an estimate of the total cost associated with purchasing goods and bringing them to a defined point in the buyer's supply chain. It usually starts with the cost of the merchandise and then adds relevant logistics, customs and import expenses.
For an importer, landed cost is often more commercially useful than factory price because it provides a broader picture of the capital invested in every saleable unit.
The exact costs included in a company's landed-cost model can vary. Some businesses calculate only product cost, freight, duty and tax, while others also allocate brokerage, port charges, inland delivery, inspection, warehousing or other expenses.
A practical landed-cost calculation brings together costs that occur at different stages of the purchasing and import process.
A buyer comparing quotations only by unit price may make the wrong purchasing decision. A product quoted at $5.50 per unit is not necessarily cheaper than an alternative quoted at $6.00 if the first option creates significantly higher freight, duty, packaging or handling costs.
The commercially relevant comparison is often the amount invested in each usable unit after the appropriate import-related expenses are considered.
For this calculator, goods value is calculated by multiplying the entered supplier unit price by the order quantity.
For example, if 1,000 units are purchased at $7.50 each, the calculated goods value is $7,500 before freight, insurance, duty, taxes and other charges are added.
This calculator uses goods value plus entered freight and insurance as its preliminary customs base. It then calculates customs duty using the duty percentage entered by the user.
Actual customs valuation rules can differ by country, product, Incoterm, assists, royalties, related-party transactions and other factors. Therefore, the calculator's customs base should be treated as a planning assumption rather than an official customs valuation.
Customs duty can materially change product economics. The rate applicable to an imported product generally depends on its tariff classification and the trade rules applying to the shipment.
Buyers should avoid estimating duty simply from product names such as 'cushion', 'rug' or 'curtain'. Fibre composition, construction, use and product classification can affect tariff treatment.
Enter a duty percentage only after obtaining a reasonable classification-based estimate. For final import planning, confirm the treatment with an appropriate customs or trade professional.
Many destinations impose VAT, GST or another tax at import. The treatment, tax base, rate, recoverability and timing vary significantly by jurisdiction and buyer status.
The calculator lets the buyer enter an estimated percentage so the potential cash impact can be included in a preliminary model. Whether that tax should ultimately be treated as a recoverable tax or part of permanent inventory cost depends on the business and jurisdiction.
Import cost does not necessarily stop when the vessel or aircraft reaches the destination. Buyers may incur a range of local expenses before merchandise reaches the warehouse.
The supplier's quoted price must be understood together with the agreed commercial term. Otherwise, costs can be accidentally counted twice or left out of the calculation.
An EXW quotation generally places a different range of transport and export responsibilities on the buyer than an FOB quotation. A CIF quotation may include specified freight and insurance to the agreed destination port, but it does not automatically represent the full amount required to place the goods in the buyer's warehouse.
Before entering freight or insurance separately, check whether those amounts are already included in the supplier's quoted price.
| Quotation Basis | Buyer Should Check |
|---|---|
| EXW | Origin pickup, export handling, origin documentation, international freight and other logistics responsibilities |
| FOB | Named port, origin-side inclusions, main freight, insurance and destination costs |
| CIF | Named destination port, freight and insurance included, plus remaining destination clearance and delivery costs |
Total landed cost tells the buyer how much capital is associated with the shipment. Landed cost per unit turns that shipment-level figure into a product-level number that can be used for pricing and profitability analysis.
If an order has a total estimated landed cost of $12,000 and contains 2,000 saleable units, the approximate landed cost is $6 per unit.
That $6 can then become a more meaningful starting point for wholesale-price, retail-price and gross-margin calculations than the original factory price alone.
Once landed cost per unit is estimated, the buyer can compare it with the intended selling price.
For example, a product purchased from the factory at $5 may become a $7 landed product after transport and import costs. Calculating margin using $5 instead of $7 would overstate the apparent profitability of the product.
This is why landed cost should feed directly into margin and selling-price analysis.
Minimum order quantity can influence landed cost in multiple ways. A larger order can spread fixed shipment-level charges across more units, potentially reducing freight or clearance cost per piece. At the same time, it requires more total purchasing capital and can create additional inventory risk.
Buyers should therefore evaluate both landed cost per unit and total landed investment.
Freight does not necessarily increase in direct proportion to quantity. A shipment that uses carton or container space efficiently can have a different freight-per-unit outcome from a small or poorly optimized shipment.
For home textiles, compressibility, carton dimensions, roll packing, bale packing and container utilization can significantly affect logistics economics.
Home textile imports can have very different logistics characteristics depending on the category. Cushion covers can be relatively compact, while filled cushions consume substantially more volume. Rugs and carpets may be rolled or folded. Bedding and throws can sometimes be compressed.
Consequently, buyers should calculate product-level economics using realistic packaging and shipment assumptions rather than applying the same logistics percentage to every category.
Create the same landed-cost model for every supplier under consideration. This provides a more consistent commercial comparison than reviewing quotation sheets independently.
Private-label orders can generate additional expenses before or during production. Depending on your accounting method, some of these costs may be included in product cost, allocated separately or treated as development expenses.
Both numbers are important, but they answer different commercial questions.
| Metric | What It Helps Evaluate |
|---|---|
| Total Landed Cost | Total capital required for the imported shipment |
| Landed Cost per Unit | Approximate inventory cost allocated to each unit |
| Factory Unit Price | Supplier's quoted product price before relevant additional import costs |
| Selling Price | Commercial revenue expected from each unit |
| Gross Margin | Relationship between selling price and product cost under the buyer's chosen accounting basis |
A calculator is most useful when its inputs reflect the actual shipment rather than generic assumptions.
This calculator is intended for preliminary sourcing, purchasing and profitability planning. It does not determine HS classification, official customs value, preferential origin, anti-dumping duties, excise, tax recoverability or destination-specific legal obligations.
Duty and import-tax rules differ by country and product and can change. Use verified shipment-specific information and appropriate professional advice when preparing an actual import entry or commercial commitment.
A reliable supplier comparison requires more than entering different factory prices. Keep the product specification and costing assumptions consistent so the result reflects a meaningful commercial difference.
Know exactly which freight, insurance and origin-side costs are already included in the quotation.
Differences in fabric, GSM, construction, finishing or packaging can make a lower quote misleading.
Freight and shipment-level charges should be allocated across the actual planned quantity.
Shipment cost can vary significantly according to dimensions, weight, route and freight mode.
Use the appropriate classification and origin information rather than a generic duty percentage.
Brokerage, handling and local delivery can materially affect the final result.
Primeval helps international buyers move from an initial product idea to a more structured sourcing enquiry. Share your product, specifications, target quantity, destination market and commercial requirements to discuss suitable Indian manufacturing capabilities.
Use the Landed Cost Calculator to understand your cost structure, then request actual factory pricing and packing information for a more realistic sourcing comparison.
Helpful answers about calculations, sourcing estimates and commercial planning.
Share your product, specifications, quantity, destination market and target cost with Primeval. Use your landed-cost target to evaluate manufacturing options and build a more commercially informed sourcing enquiry.