Landed cost calculator
Freight and duty are part of what the goods cost — pretending otherwise flatters every margin report you will ever run. Landed cost per unit is the honest denominator.
Margin computed on goods cost alone overstates profit on every imported item — landed cost is the honest denominator.
The invoice is not the cost
Landed cost is what a unit actually costs on your shelf: the supplier price plus freight, duty, brokerage, insurance and any handling — divided across the units in the shipment. A $10 unit with $2 of freight and duty is a $12 unit, and pricing from $10 quietly gives away the difference.
For imported goods the gap is frequently 15–30%, which is enough to turn a line you believe is profitable into one that is not.
Allocating shared costs
Freight on a mixed container has to be spread somehow — by value, by weight or by volume. By value is simplest and usually acceptable; by weight or volume is fairer when a shipment mixes heavy cheap goods with light expensive ones.
Whichever you choose, apply it consistently, because switching methods between shipments makes margin trends meaningless.
Frequently asked questions
Should landed cost go into my books?
Yes — cost prices in your inventory system should reflect landed reality, or your margins and stock valuation both drift optimistic.
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