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Landed cost calculator

Work out the landed cost of each product in a shipment by sharing freight, insurance and handling across the lines and adding duty at the rates you enter. Get a landed cost per unit for pricing.

Up to 150 shipment lines and 100,000 characters, with item names of up to 80 characters. Quantities from 1 to 10,000,000, unit costs up to 1,000,000 with four decimal places, unit weights up to 1,000,000 with three decimal places and duty rates up to 1,000 percent with four decimal places. Freight, insurance, handling and other costs up to 1,000,000,000 each. Calculated on your device. Download a JSON report and CSV files. One product per line: name, quantity, unit cost, then optional unit weight and duty rate. Write numbers without thousands separators. Up to 100,000 characters. Review the settings before running.

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How to use Landed cost calculator
  1. Paste one shipment line per row with quantity, unit cost and, if you have them, unit weight and duty rate.
  2. Enter freight, insurance, handling and other costs for the whole shipment.
  3. Choose how to share freight and handling, and whether duty is charged on product value alone or with freight and insurance.
  4. Calculate, review the landed unit costs, then download the report.

Useful next steps

What goes into landed cost

Landed cost is the purchase price plus the costs of getting the goods to you. IAS 2 Inventories (revised December 2003), paragraph 11, lists the purchase price, import duties and other taxes you cannot recover, and transport, handling and other costs directly attributable to buying the goods. Each line product value is quantity times unit cost, rounded to the currency decimal places. Shared shipment costs and duty are then added, and the landed unit cost is the line total divided by its quantity.

Sharing shipment costs

Freight is shared by total weight, product value or units, insurance by product value, and handling and other costs by the basis you choose. Each cost is split in whole minor units: every line first gets its share rounded down, and the units left go to the largest remainders, the Hamilton method described in Fair Representation by Balinski and Young (Yale University Press, 1982), so the shares add up exactly to the cost. In the example, the 729.5 kg shipment puts 699.93 of the 1,850.00 freight on the dog beds, which weigh 276 kg.

Duty is your input

Duty for each line is the rate you enter times its dutiable value. Article 8.2 of the WTO Customs Valuation Agreement (1994) lets each country decide whether that value includes freight and insurance to the port of import, so choose product value only or product value plus freight and insurance. No tariff rates, de minimis thresholds, trade agreements or exchange rates are built in, so look up the rate for each product in your import tariff. Recoverable taxes such as VAT or GST are left out of landed cost.