Landed cost per unit
The supplier's price is only part of the cost: freight, duties, handling and units that arrive damaged count too. Work out what each unit you can sell really costs you.
How to calculate the real cost per unit of a shipment or import
Enter the supplier price, the exchange rate if you pay in another currency, the units received and the costs to your warehouse: freight, insurance, duties and handling. Also enter how many units you can sell. The calculator gives you the real cost of each unit.
Example: you buy 100 units for 2,000 (20 each) and pay 300 for freight and 100 for handling. Each unit costs you 24. If 4 arrive damaged and you can only sell 96, the cost rises to 25 per unit: 25% more than the supplier price.
How it is calculated
- Goods = supplier price × exchange rate (1 if you pay in your own currency).
- Total cost = goods + freight + insurance + non-recoverable duties and taxes + handling + other.
- Cost per sellable unit = total cost ÷ units you can sell.
Assumptions
- You enter duties and taxes: they depend on the product, origin and destination country.
- Do not include taxes you recover, such as reclaimable VAT.
- Damaged or unsellable units spread their cost over the rest.
Frequently asked questions
What is landed cost?
What each unit really costs you once it is in your warehouse and ready to sell: the supplier price plus freight, insurance, duties and handling.
Why spread costs over sellable units?
Because damaged or unsellable units were paid for too. If you do not recover them, their cost must be covered by the units you do sell.
Which duties should I enter?
Those that apply to your product, its origin and the destination country. The calculator does not work them out: check with your customs broker or official sources.
Should I include import VAT?
Only if you cannot reclaim it. If it is recoverable, it is not part of the cost, although it affects your cash until you get it back.
How do I use the exchange rate?
If you pay the supplier in another currency, enter how many units of your currency you pay for each unit of theirs. The price is converted before adding the other costs, which you enter in your own currency.