Tariff Landed Cost Calculator
Landed cost is the complete cost of bringing goods from a foreign supplier to your facility or distribution centre. It includes the goods purchase price, international freight, insurance, import duty, and local handling or brokerage. This calculator sums all components and applies the import duty rate to the customs value (goods plus freight plus insurance, the CIF value, which is the standard in most countries). Enter each component to see the total landed cost and the effective cost as a percentage above the goods purchase price.
Landed cost formula
CIF value = goods + freight + insurance
Import duty = CIF value x (duty rate / 100)
Total landed cost = CIF value + duty + handling
Premium% = (total landed cost - goods price) / goods price x 100
The premium percentage shows how much more the landed cost is compared to the bare purchase price. A 27% premium means you need to factor in 27% above the supplier invoice when pricing for resale.
Components of landed cost
- Goods value: the FOB (free on board) or ex-works price agreed with the supplier.
- Freight: ocean LCL or FCL, or airfreight, depending on urgency and weight.
- Insurance: typically 0.5 to 1.5% of the CIF value for marine cargo policies.
- Import duty: the tariff rate from the HTSUS multiplied by the customs value.
- Handling: port fees, customs brokerage ($75 to $300 typical), and inland freight to your warehouse.
Frequently asked questions
What is a landed cost?
Landed cost is the total cost of a product arriving at the buyer's door, including the purchase price, international freight, insurance, customs duty, handling, and any port fees. It is the true cost of ownership for an imported item.
Is duty applied to the goods value only or the full CIF value?
Under the US CBP first-sale transaction value method, duty is typically applied to the customs value of the goods (the transaction value), which may or may not include freight and insurance depending on the terms of sale. Under the CIF (cost plus insurance plus freight) valuation method used by many other countries, duty is applied to the CIF total. Select the method applicable to your shipment.
What is a realistic freight cost for a container shipment?
Ocean freight costs vary significantly by route, container type, and market conditions. A 20-foot container from China to the US West Coast ranged from $1,200 to $20,000 between 2018 and 2022 based on market swings. Use your actual carrier quotes.
What is the Merchandise Processing Fee?
The US MPF is 0.3464% of the entered value (min $31.67, max $614.35 per entry in 2024). It applies to most formal commercial imports and is charged by CBP. It is a separate charge on top of the import duty.
How does landed cost affect pricing?
Importers must add the landed cost to their domestic marketing, warehousing, and profit margin to set a viable retail price. Underestimating landed cost is a common cause of thin or negative margins on imported products.
Official sources
- US CBP, Importing into the United States: cbp.gov/trade/basic-import-export/importing-us.
- USITC Harmonized Tariff Schedule: usitc.gov/tata/hts/.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.