Free Import Cost Calculator Import Cost & Sourcing

FOB to Landed Cost Calculator

Understand what your imported product may actually cost after it leaves the supplier.

A supplier's FOB price is only one part of the total cost of importing goods. International freight, insurance, customs duty, VAT or GST, clearance, port charges and inland delivery can materially increase your effective cost per unit.

Use this calculator to turn an FOB quotation into a practical preliminary landed-cost estimate before confirming an import order.

Free to use Instant estimate Built for sourcing & trade

FOB Start with supplier price

Landed Estimate true unit cost

B2B Built for import buyers

Calculation Currency

Enter all monetary values using the same currency. This calculator does not perform live foreign-exchange conversion.

FOB Price per Unit

Enter the supplier FOB price for one product unit.

Order Quantity

pcs

Enter the number of product units included in the shipment.

International Freight

Enter total ocean, air, road or courier freight from the FOB point to the destination port or airport.

Cargo Insurance

Enter estimated cargo or marine insurance for the shipment.

Customs Duty Rate

Enter the applicable customs duty percentage. Actual rates depend on HS classification, origin, destination and trade agreements.

Import VAT / GST / Sales Tax

Enter applicable import VAT, GST or similar tax rate. Tax rules and recoverability vary by country.

Destination & Clearance Costs

Add expenses incurred after the goods arrive at the destination.

Customs Clearance / Brokerage

Enter customs broker, clearance or entry-processing charges.

Destination Port / Terminal Charges

Include terminal handling, port fees, documentation or destination handling where applicable.

Destination Inland Transport

Enter trucking, courier, rail or other transport from the port or airport to your warehouse.

Inspection / Testing / Compliance

Optional allocation for inspection, laboratory testing, certification or destination compliance expenses.

Bank / Payment Charges

Optional bank transfer, letter-of-credit, payment-processing or finance charges allocated to the shipment.

Other Import Charges

Include other known shipment costs not already entered above.

Important Customs & Tax Note

This calculator uses a general planning model in which customs duty is applied to the estimated customs value and import tax is applied to customs value plus duty. Actual customs valuation and tax bases vary by country. Confirm the applicable HS code, valuation rules, tax treatment and trade-agreement eligibility with a qualified customs professional.

Landed Cost Estimate

Estimated FOB to Landed Cost

Enter your import costs

Add the FOB price, quantity, freight and applicable import charges to estimate landed cost.

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.

About this calculator

What Is an FOB to Landed Cost Calculator?

An FOB quotation tells a buyer the price of goods delivered by the supplier to the agreed port of shipment under Free On Board terms. It does not represent the total cost of getting those products into the buyer's warehouse.

The difference between FOB price and landed cost can be substantial. International freight, cargo insurance, customs duty, import VAT or GST, brokerage, terminal handling, destination transportation and other charges can all increase the effective product cost.

Primeval's FOB to Landed Cost Calculator helps importers, wholesale buyers, retailers, sourcing teams and private-label brands estimate these additional expenses before confirming an overseas purchase order.

Understanding landed cost is particularly important when comparing suppliers from different countries, evaluating target retail margins or deciding whether a quoted FOB price fits the buyer's commercial model.

Simple process

How to Calculate Landed Cost from an FOB Price

Enter your specifications and use the result as a practical starting point for product, sourcing and shipment planning.

Enter the supplier FOB price

Enter the FOB price quoted by the supplier for one unit of the product.

Enter the order quantity

The calculator multiplies unit FOB price by quantity to determine the total FOB goods value.

Add freight and insurance

Enter expected international transport and cargo-insurance costs to estimate the customs-value base used by this planning model.

Enter duty and import tax

Add the applicable duty rate and VAT, GST or similar import tax based on your destination market and product classification.

Add destination costs

Include customs brokerage, terminal charges, inland transport, testing, finance and other known import expenses.

Review landed cost per unit

The calculator combines the entered costs and shows the estimated total landed order value, landed cost per unit and percentage increase above the original FOB price.

The calculator begins with the total FOB goods value. Freight and insurance are added to create an estimated customs value. Duty is calculated on that customs value. Import tax is then estimated using customs value plus duty under the calculator's general planning model. Destination and clearance expenses are added afterward.

Formula

Landed Cost = FOB Goods Value + Freight + Insurance + Duty + Import Tax + Clearance + Destination Charges + Inland Freight + Other Costs

What the values mean

FOB Goods Value: Supplier FOB price per unit multiplied by the total order quantity.
International Freight: Cost of transporting the shipment internationally.
Cargo Insurance: Insurance cost allocated to the international shipment.
Customs Value: The calculator's planning customs base consisting of FOB goods value plus freight and insurance.
Customs Duty: Estimated duty calculated using the entered customs duty percentage.
Import Tax: Estimated VAT, GST or similar import tax under the calculator's simplified model.
Destination Costs: Brokerage, terminal, inland freight, inspection, bank and other import expenses.
Landed Cost: Estimated total economic cost of the shipment at the selected landed-cost point.

Practical examples

FOB to Landed Cost Examples

See how typical values translate into a useful planning estimate.

Example 1

Home Textile Order at $8.50 FOB

A buyer importing 1,000 units should evaluate the international and destination expenses in addition to the supplier's quoted FOB unit price.

FOB Unit Price: $8.50
Quantity: 1,000 pcs
FOB Goods Value: $8,500
International Freight: $1,200
Insurance: $75

Result Add duty, tax and destination costs to calculate landed cost

Example 2

Comparing Two Suppliers

A supplier with a lower FOB price is not automatically the lower-cost option if freight, duty treatment or destination expenses differ materially.

Supplier A: $7.80 FOB
Supplier B: $8.20 FOB
Comparison: Use landed cost

Result Compare complete landed cost rather than FOB alone

Example 3

Landed Cost and Wholesale Margin

Once the landed cost per unit is known, buyers can use that figure as a more meaningful basis for wholesale or retail margin calculations.

FOB Price: $10.00
Landed Cost: $13.25
Added Import Cost: $3.25

Result Use $13.25 rather than $10.00 when evaluating gross margin

Example 4

Destination Transport Matters

When a warehouse is located far from the destination port, inland transport can create a meaningful additional cost per imported unit.

Shipment Quantity: 2,000 pcs
Inland Transport: $600

Result $0.30 inland freight allocation per unit

FOB vs Landed

What Is the Difference Between FOB Price and Landed Cost?

FOB price and landed cost represent different stages of an international transaction.

An FOB quotation generally reflects the seller's responsibility up to the point defined by the Free On Board Incoterm. A landed-cost calculation goes further by considering the costs required to import and move the goods to the buyer's chosen destination.

This distinction is important because a product quoted at $8 FOB may ultimately cost considerably more after freight, duty, tax and destination handling are allocated.

Cost Components

What Costs Are Included in Landed Cost?

The exact definition depends on the buyer's accounting policy and the point at which the cost is measured. A practical import landed-cost model may include the following components.

FOB goods value The supplier's FOB price multiplied by shipment quantity.
International freight Ocean, air, road, rail or courier transport between countries.
Cargo insurance Marine or transport insurance allocated to the shipment.
Customs duty Import duty determined by product classification, country of origin and importing market.
Import VAT / GST Destination tax that may apply at importation, subject to local rules.
Customs brokerage Charges for customs entry and clearance services.
Port and terminal charges Destination handling, terminal and documentation expenses.
Inland transportation Movement from the destination port or airport to the buyer's warehouse.
Testing and compliance Inspection, testing, certification or regulatory costs where applicable.
Other shipment costs Finance, banking, storage or miscellaneous costs allocated to the import.

Incoterms

What Does FOB Mean in International Trade?

FOB stands for Free On Board. It is an Incoterm commonly associated with sea and inland-waterway transport.

The commercial meaning of FOB should be interpreted using the applicable Incoterms rules and the named port of shipment. Buyers should therefore avoid treating the word FOB as merely another term for factory price.

A quotation such as FOB Nhava Sheva or FOB Mundra identifies a specific commercial delivery point and should be evaluated together with the agreed Incoterm version and purchase contract.

Customs Value

How Is Customs Value Different from FOB Value?

Customs authorities may use defined valuation rules when calculating import duty. Depending on the importing country, freight, insurance and other adjustments may be included in or excluded from the customs-value base.

This calculator uses FOB goods value plus international freight and insurance as a general planning customs base. It should not be treated as a substitute for the valuation rules of a specific customs jurisdiction.

HS Classification

Why HS Code Matters When Calculating Landed Cost

The Harmonized System classification of a product is a critical input in import planning because it can determine the applicable customs duty and other regulatory requirements.

Products that appear commercially similar can sometimes fall under different tariff classifications depending on composition, construction or intended use.

Product description Accurate construction and material information supports correct classification.
Material composition Cotton, wool, synthetic fibres, jute and blends may affect tariff treatment.
Product construction Woven, knitted, tufted and other constructions can be classified differently.
Country of origin Origin can affect eligibility for preferential tariff treatment.

Customs Duty

How Customs Duty Changes the Landed Cost per Unit

Customs duty is an additional import cost that can significantly change the economics of a sourcing decision. Even a relatively small duty percentage becomes commercially meaningful on a large shipment.

For example, an 8% duty applied to a customs value of $10,000 creates an estimated $800 duty expense. On a shipment of 1,000 units, that represents approximately $0.80 per unit before considering import tax or destination handling.

Import Tax

Import VAT or GST Is Not the Same as Customs Duty

Customs duty and import VAT or GST are separate concepts. Duty is generally tariff-related, while VAT or GST forms part of a country's consumption-tax system.

Businesses may in some jurisdictions be able to recover qualifying import VAT or GST, while in other situations it may represent an effective cost. Buyers should therefore distinguish between cash required at import and non-recoverable landed cost when building their own financial model.

Freight

How International Freight Affects Unit Cost

International freight should be allocated across the imported quantity when evaluating true product economics. A $2,000 freight charge spread across 10,000 units adds $0.20 per unit, while the same freight charge on only 1,000 units adds $2.00 per unit.

This is one reason why order quantity, carton efficiency and shipping method can dramatically change the landed-cost outcome.

Ocean vs Air

FOB Landed Cost for Ocean Freight vs Air Freight

Ocean and air freight can create very different cost structures. Ocean freight is often used for commercial home-textile orders because of shipment volume, while air freight may be chosen for samples, urgent replenishment or smaller shipments.

Ocean freight Often suitable for larger shipments but can include origin, destination and container-related charges.
Air freight Usually faster but can create a much higher freight allocation per unit.
Courier Useful for samples and smaller parcels, with billing often influenced by chargeable weight.

Destination Costs

Do Not Ignore Destination Charges

Importers sometimes focus on FOB price and headline freight while underestimating destination costs. Customs clearance, terminal handling, documentation, delivery orders, storage and inland transport can materially affect the final landed amount.

The importance of these charges increases when shipment quantities are small because fixed costs are allocated across fewer product units.

Supplier Comparison

Compare Suppliers Using Landed Cost, Not FOB Price Alone

When two suppliers quote different prices, comparing only FOB values can produce the wrong commercial conclusion.

A supplier with a slightly higher FOB price may still provide a lower landed cost if freight is lower, carton utilization is better, tariff treatment is more favourable or destination handling is simpler.

For serious sourcing analysis, buyers should compare products using equivalent specifications and the same landed-cost boundary.

Order Quantity

Why MOQ Can Change Landed Cost per Unit

Many import expenses are fixed or semi-fixed for a shipment. Customs brokerage, documentation, delivery and certain terminal charges do not necessarily increase in direct proportion to the number of products.

As a result, a larger order may distribute fixed logistics costs across more units and reduce landed cost per piece, although inventory commitment and working capital also increase.

Home Textiles

Using Landed Cost for Home Textile Sourcing

Home-textile buyers sourcing cushions, rugs, throws, curtains, bedding and related products should evaluate landed cost before setting wholesale or retail prices.

Bulky products can have relatively low factory prices but significant freight costs. Dense rugs and carpets can create weight-related logistics considerations, while cushions and bedding can consume substantial cubic volume.

Profitability

Use Landed Cost Before Calculating Wholesale Margin

A buyer who calculates gross margin from FOB cost alone may substantially overestimate profitability. The more meaningful starting point is usually the cost incurred to bring the product to the point defined by the buyer's landed-cost policy.

Once landed cost per unit is calculated, it can be compared against wholesale or retail selling price using Primeval's Wholesale Margin Calculator.

Example Breakdown

Example FOB to Landed Cost Components

Illustrative Import Cost Structure

Cost Component	Example	Cost Stage
FOB Goods	$8,500	Supplier value
International Freight	$1,200	International transport
Cargo Insurance	$75	Transit
Customs Duty	Depends on HS code	Import
VAT / GST	Depends on destination	Import
Customs Brokerage	$150	Clearance
Port Charges	$275	Destination
Inland Freight	$350	Warehouse delivery

Buyer Checklist

Information Needed for an Accurate Landed Cost Estimate

Supplier FOB price Confirm the quoted unit price and named FOB port.
Order quantity Use actual planned quantity rather than an assumed MOQ where possible.
Packing information Obtain cartons, dimensions, gross weight and total CBM.
Freight quotation Use a current quotation for the applicable transport mode and lane.
HS code Confirm appropriate tariff classification.
Country of origin Origin may affect tariff rates and preferential treatment.
Duty rate Use the destination country's applicable import-duty rate.
VAT or GST Determine the relevant import tax treatment and recoverability.
Destination charges Obtain broker, terminal and delivery cost estimates.

Important

Landed Cost Is an Estimate, Not a Customs Assessment

This calculator is intended for preliminary commercial planning. It does not determine the correct HS code, legal customs value, preferential origin, anti-dumping duty, excise tax, import licensing, VAT recovery or any other country-specific customs treatment.

Before placing an import order, confirm applicable customs and tax requirements using official tariff information and qualified professional advice where appropriate.

For importers & buyers

Before Comparing FOB Supplier Quotations

The lowest FOB quote is not automatically the lowest-cost sourcing option. Compare suppliers on equivalent specifications and calculate the full cost required to bring the goods to the same destination point.

Use identical Incoterms

Do not compare an EXW quotation directly with FOB or CIF without adjusting for the different cost responsibilities.

Compare equivalent products

Fabric GSM, construction, packing, finishing and quality standards should be equivalent.

Check carton efficiency

Poor packing efficiency can increase freight cost per unit.

Verify HS classification

Different tariff treatment can materially change landed cost.

Check origin benefits

Trade agreements may affect duty where qualifying origin rules are satisfied.

Use current freight prices

Freight markets can change, so old shipment rates may create misleading landed-cost estimates.

Source with Primeval

Planning to Source Home Textiles from India?

Primeval helps international buyers source home textiles from India and evaluate commercial requirements before placing production orders.

Share your product specifications, quantity, packing requirements, target price and destination market. Use this calculator to understand the gap between an FOB supplier quotation and your potential landed cost.

Cushion covers
Rugs and carpets
Throws and blankets
Curtains
Bed linen
Kitchen textiles
Bath textiles
Handwoven products
Private-label development
Custom designs
Factory sourcing
Sampling support
Packaging development
Export production

Buyer questions

FOB to Landed Cost Calculator FAQs

Helpful answers about calculations, sourcing estimates and commercial planning.

What is landed cost?

Landed cost is the total cost associated with acquiring and importing goods to a defined destination point. It can include supplier cost, freight, insurance, customs duty, import tax, brokerage, destination handling, inland delivery and other import-related expenses.

What is FOB price?

FOB means Free On Board. It is an Incoterm used for sea and inland-waterway transport. The exact responsibilities of buyer and seller depend on the named port and applicable Incoterms rules.

How do I calculate landed cost from FOB?

Start with the total FOB goods value, then add international freight, insurance, customs duty, import taxes, customs clearance, destination handling, inland delivery and other applicable costs.

What is the formula for FOB to landed cost?

A simplified formula is FOB goods value plus freight, insurance, customs duty, import tax, clearance, destination costs, inland freight and other import charges.

Does FOB include ocean freight?

FOB generally does not include the buyer's main international ocean freight from the named port of shipment to the destination.

Does FOB include insurance?

The buyer should not assume that international cargo insurance is included in an FOB price. Insurance responsibilities should be confirmed under the agreed contract and shipment arrangements.

Does FOB include customs duty?

No. Import customs duty at destination is generally a buyer-side import cost rather than part of the supplier's FOB price.

Does FOB include VAT or GST?

Import VAT, GST or similar destination taxes are not normally part of the supplier's FOB unit price.

How is customs duty calculated?

Customs duty is generally calculated using the customs value and the applicable tariff rate, but the exact valuation basis and duty rules depend on the importing jurisdiction.

What is customs value?

Customs value is the value determined under the importing country's customs valuation rules for calculating duties and certain taxes. It is not always identical to the supplier invoice or FOB value.

Does freight affect customs duty?

It can. Whether freight forms part of customs value depends on the valuation rules of the importing jurisdiction.

What is import VAT?

Import VAT is value-added tax charged when goods enter a VAT jurisdiction. Treatment, calculation and recoverability depend on local tax rules.

Is import VAT always a true landed cost?

Not necessarily. Some VAT-registered businesses may be entitled to recover qualifying import VAT. Businesses should distinguish between cash paid at import and non-recoverable economic cost.

What destination charges should I include?

Depending on the shipment, destination charges may include terminal handling, customs brokerage, documentation, port fees, storage, delivery-order fees and inland transportation.

Should customs brokerage be included in landed cost?

Many businesses include customs clearance or brokerage when calculating the cost of getting imported goods to their warehouse.

Should inland transport be included in landed cost?

If your landed-cost definition ends at your warehouse, inland transportation from the port or airport should generally be included.

Can I include inspection or testing costs?

Yes. If inspection, certification or compliance testing is economically attributable to the shipment, you can include it in the relevant field.

Can I include bank charges?

Yes. The calculator includes an optional field for payment, banking or finance charges if your internal costing policy allocates them to the import.

Can this calculator compare suppliers?

Yes. Calculate landed cost for each supplier using the same destination point and equivalent product specification to create a more meaningful comparison than FOB price alone.

Why can a lower FOB price have a higher landed cost?

Freight, packing efficiency, customs treatment, duty rates, destination charges and shipment quantity can offset or exceed the apparent FOB saving.

How does order quantity affect landed cost per unit?

Fixed or semi-fixed shipment costs are spread across the order quantity. Smaller shipments can therefore have a higher logistics allocation per unit.

Can I use this for home textile imports?

Yes. The calculator is suitable for preliminary landed-cost analysis for cushions, rugs, carpets, throws, curtains, bedding and other imported products.

Can I use this calculator for imports from India?

Yes. Enter the FOB supplier price from India together with your freight, destination duty, tax and local charges.

Can I calculate landed cost in USD, EUR, GBP or INR?

Yes. Select a calculation currency and enter every monetary input using that same currency. The calculator does not automatically perform live exchange-rate conversion.

Does the calculator automatically know my duty rate?

No. Enter the duty rate applicable to your product and destination. Customs rates depend on classification, country of origin, importing country and other factors.

Does the calculator determine the HS code?

No. HS classification requires appropriate product information and should be confirmed using relevant customs resources or professional advice.

Does a free-trade agreement reduce landed cost?

It can if the product qualifies under the agreement's origin rules and all applicable requirements are satisfied.

What is landed cost per unit?

Landed cost per unit is the estimated total landed shipment cost divided by the number of product units.

Why should I use landed cost for margin calculation?

Using FOB cost alone can understate the economic cost of imported inventory. Landed cost provides a more complete basis for evaluating wholesale or retail profitability.

Is this calculator a confirmed customs calculation?

No. It is a preliminary commercial planning tool. Actual customs duties, tax treatment, valuation, origin rules and destination costs should be independently confirmed.

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