How to use Total Landed Cost& Customs Duty Calculator
- Enter Ex-works / FOB unit price ($) and adjust the options as needed.
- Run the tool and inspect its results, evidence and limitations.
- Copy or download the result, then verify it against the actual website, source data or business records.
Try a concrete example
For $28.5 FOB unit price, 500 pcs ($14,250 cargo), $1800 ocean freight, 0.3% insurance, 6.5% standard duty, and $1200 port/drayage: unit landed cost is $36.63 (+28.53% markup). Total landed outlay is $18,315.65. At 35% target margin, minimum wholesale price is $56.35 with $19.72 net unit margin contribution.
How to interpret results
Total landed cost is the financial lifeblood of international commerce. Calculating margins purely from ex-works FOB prices leads to cash-flow deficits on heavy or tariffed goods. Duty valuation rules (CIF vs FOB) substantially alter tax exposure.
Frequently asked questions
Why do US and European customs differ significantly on duty valuation (CIF vs FOB)?
Most WTO members (EU, UK, Australia, Japan) assess duty on CIF value (Cost, Insurance, Freight included). US Customs (CBP) generally assesses ad valorem duty on the port-of-origin FOB value, excluding international ocean freight and insurance.
How severely do anti-dumping duties impact landed cost?
AD/CVD tariffs and Section 301 duties frequently reach 25% to 150%+. For steel, aluminum, solar panels or mechanical components, failing to verify punitive duties beforehand can trigger five-figure surprise assessments and cargo abandonment.
Why must unit landed cost account for terminal handling (THC) and inland drayage?
Port-to-port ocean freight leaves cargo at the terminal. Terminal handling charges (THC), documentation fees, demurrage and container drayage to the warehouse regularly total 30% to 50% of the entire freight bill.
What is the typical markup range between ex-factory price and landed cost?
Compact electronics with high value-to-cube ratios see landed markups of 8% to 15%. Volumetric industrial parts, furniture, hardware and plastics frequently see markups of 35% to 75%+ over FOB.