Free tool
Landed cost calculator
Work out the true cost per unit once freight, duties and fees are added, and what that does to your margin.
The landed cost formula
Example: 500 units at $6 ($3,000), $650 freight, 7.5% duty ($225) and $180 fees. Landed cost = $4,055 ÷ 500 = $8.11 per unit. At a $24 price, margin falls from 75% to 66%.
Use landed cost, not supplier price, as the unit cost in the EOQ and carrying cost calculators.
FAQ
What is included in landed cost?
Product cost plus everything to get it sellable: freight, insurance, customs duties, brokerage and handling fees.
How do I split shipping across products?
Most stores allocate by value (each line's share of the order value) or by quantity. Value is the common default; quantity suits shipments of similar items.
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