How to calculate landed cost
- Enter the number of units in the shipment and the supplier’s price per unit. Add any one-off costs, such as samples or mould fees, that you want to spread across this order.
- Enter the freight, insurance and any origin charges (factory inspection, export handling) for the whole shipment.
- Enter the import duty rate for your product’s HS code and choose whether duty is calculated on the CIF or FOB value in your destination country. Add VAT/GST or other import taxes, and broker and port fees.
- Add local delivery and any per-unit prep or labelling.
- The calculator shows the landed cost per unit and a breakdown of where the money goes.
What is landed cost?
Landed cost is the total cost of a product by the time it reaches your door (or Amazon’s warehouse). The supplier’s price is often only 50–75% of it. Sellers who price products from the factory price alone frequently discover — after the first shipment — that they have very little margin left.
Landed cost = Product cost + Shipping + Insurance + Customs duty + Taxes + Fees + Local delivery
CIF vs. FOB duty basis
| Basis | Duty is charged on | Used by (examples) |
|---|---|---|
| FOB / transaction value | The price of the goods only | United States, Canada, Australia |
| CIF value | Goods + international freight + insurance | European Union, United Kingdom, Bangladesh, India and many others |
Many countries also charge VAT or GST on imports, usually calculated on the CIF value plus the duty. This calculator follows that order: duty first, then other taxes on (customs value + duty).
Country notes
- United States: duty depends on the HTS code and country of origin; goods from China may carry additional Section 301 and other tariffs on top of the general rate. Ocean shipments also pay a Merchandise Processing Fee and Harbor Maintenance Fee (both small percentages). The US ended the $800 de minimis exemption for imports from all countries in August 2025, so low-value parcels now pay duty too.
- Bangladesh: imports can attract several layers — customs duty (CD), regulatory duty (RD), supplementary duty (SD), VAT, advance income tax (AIT) and advance tax (AT). Together these are known as the total tax incidence (TTI), which can be far higher than the customs duty alone. Check the current rate for your HS code in the National Board of Revenue tariff schedule.
- EU/UK: duty on CIF value, then import VAT on (CIF + duty).
Tariff rates change often. Always confirm the rate for your exact HS code with your customs broker or freight forwarder before ordering.
Using landed cost for pricing
Once you know your landed cost, plug it into the Amazon FBA Calculator or Profit Margin Calculator to set a profitable selling price. Many sellers aim for a selling price of at least 3–4 times landed cost on Amazon to leave room for fees and advertising.
Frequently asked questions
What is included in landed cost?
Product cost, international freight, insurance, customs duties, import taxes, brokerage and port fees, local delivery, and any prep or labelling — everything needed to get the product ready to sell.
Is duty calculated on freight?
It depends on the country. The USA and Canada charge duty on the goods’ value (FOB), while the EU, UK, Bangladesh and many others charge it on CIF value, which includes freight and insurance.
Where do I find my duty rate?
Find your product’s HS code and look it up in your country’s customs tariff schedule, or ask your freight forwarder or customs broker.
Should I include one-off costs like moulds?
For pricing, it is useful to spread them across your first order or expected lifetime units so you know the true cost. Enter them as one-off costs.