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Free calculators / Landed Cost Calculator

Landed Cost Calculator

What does one unit really cost you?

The price on your supplier's invoice is not what a product costs you. Add the freight, the duty and the packaging, and you have the landed cost: the number every price should be built on.

Your numbers

Freight per unit
$0.60
Duty per unit
$0.15
Landed cost per unit
$4.20
Cost of the whole shipment
$840.00

Your real cost is 40.0% above the supplier's price. Price from this number, not the invoice.

The Products tab in the kit works out landed cost for every product you sell, then uses it to suggest a price and show your real margin.

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How the sum works

  1. Landed cost = unit cost + freight per unit + duty per unit + packaging and other costs per unit.
  2. Freight per unit is the freight bill divided by the number of units it carried.
  3. Duty is a percentage of the unit cost. Your customs broker or carrier tells you the rate for your product.

Questions

Why does landed cost matter?

If you price from the supplier's invoice alone, the freight and duty come straight out of your profit. A product that looks like it keeps 60% can really keep 45%.

Should I include my own time?

Landed cost covers getting the product to your shelf, ready to sell. Your time, rent and marketing are overheads. Count those in your monthly profit, not in the cost of each unit.

What if a shipment carries several products?

Split the freight by how much space or weight each product takes up, then run each product on its own.

This was one sum

The Back Office Kit runs all of them, for every product, together.

One Excel workbook that prices your products, tracks your stock, logs your orders and builds your invoices and wholesale line sheet. One payment of $19. Download the moment you pay.

The dashboard tab of the Back Office Kit: revenue, profit, cash, stock value and items to reorder.