local_shippingOrders and logisticsBuyers9 min read

Landed Cost: How to Calculate the Real Cost of Imported Goods

Calculate product, freight, insurance, duties, taxes, brokerage, inspection, handling, and financing costs to compare sourcing options fairly.

Reviewed and updated October 3, 2026 by Virteche Global

Landed cost is the total cost to buy goods and make them available at a defined destination, such as your warehouse. Always name that destination and state whether recoverable taxes, internal overhead, and inventory carrying cost are included.

A practical landed-cost formula

Start with the supplier price for the accepted quantity, then add all costs not included under the agreed delivery term.

Goods, tooling allocated to the order, setup, samples, and custom packaging.
Origin handling, export documents, inland transport, international freight, and cargo insurance.
Customs value adjustments, duties, tariffs, import taxes, brokerage, bonds, exams, port or terminal fees, and storage.
Destination handling, final-mile delivery, inspection, testing, payment fees, currency conversion, and financing.

Allocate shared costs consistently

Container, brokerage, and inspection costs are often shared across several SKUs. Allocate them by the driver that best explains the cost—weight, volume, value, units, or a hybrid—and preserve the method so later orders remain comparable.

Calculate per-unit landed cost by SKU, not only a shipment total.
Keep duties and recoverable taxes separate from operating cost.
Record the exchange-rate source and date.

Use ranges before the shipment

Freight, duty treatment, exams, and currency rates can change. Before ordering, model a base case and a downside case. Confirm tariff classification and current rates with a qualified customs professional rather than relying on a supplier's informal code.

Frequently asked questions

Does landed cost include profit margin?

Usually no. Landed cost measures the cost to make inventory available at the chosen destination. Selling, fulfillment, overhead, returns, and desired margin are added when setting a selling price.