Tools
Landed Cost Calculator. Know what each unit really costs you.
Most founders price off the factory quote. Then freight, duty, import VAT, clearance fees and fulfilment take a slice each, and the 60% margin on the spreadsheet turns into 30% in the bank. Enter your supplier price and costs to see your true landed cost per unit and the margin left once orders are packed.
Landed Cost & Margin Calculator
How landed cost works
Goods + freight + insurance = customs value. Duty is charged on that. Add clearance fees, divide by the units, and you have what each one really costs you landed.
- Duty is charged on goods, freight and insurance to the UK border
- CIF
- Import VAT, reclaimable if you're VAT registered
- 20%
- Landed cost, margin and units to recover the shipment
- Per unit
Fill in the form and press Calculate. You need four things to start: the supplier's unit price, the number of units, your selling price and, for a currency other than pounds, an exchange rate (we fetch one for you).
- Landed cost per unit
- …
- Gross margin
- …
- Margin after fulfilment
- …
- Units to recover the shipment
- …
| Cost | Shipment | Per unit |
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Margin tight once orders are fulfilled?
Landed cost and fulfilment are two of the biggest lines between your selling price and your profit. Talk it through with us, or see how SHIPMAX matches brands with vetted UK 3PLs at 0% commission to brands.
Planning where this stock will be stored and shipped from? See how we match brands with 3PLs.
Small print. These figures are estimates to help you plan, worked out from what you enter and from published rates and rules that can change without notice. They aren't quotes, guarantees or professional advice. Duty assumes the standard UK third country rate: preferential origin, reliefs and anti-dumping duties can change it. Exchange rates move daily, so the rate on the day you pay your supplier will differ. Confirm classification and valuation with your customs broker before you set prices. SHIPMAX accepts no liability for decisions made on the strength of these figures.
The method
How landed cost is calculated.
- Goods. The ex-works unit price times the number of units, converted to pounds at the latest European Central Bank reference rate, or at your own rate if you enter one.
- Customs value. Goods plus freight and insurance to the UK border. UK customs charges duty on this figure, not on the factory price alone (GOV.UK, valuing imported goods using Method 1).
- Duty. The customs value times the duty rate for your commodity code. Type it in, or enter the code and we fetch the standard (third country) rate from HMRC's UK Trade Tariff. Goods of qualifying origin, such as EU origin goods under the UK and EU trade agreement, may pay a lower preferential rate.
- Import VAT. Charged on the customs value plus duty. If you're VAT registered you can reclaim it, or account for it on your VAT return with postponed VAT accounting, so it's a cash flow cost, not a margin cost. If you're not registered, it's a real cost and the calculator adds it in. HMRC's value for import VAT can also include transport and other incidental costs up to the goods' first destination in the UK (GOV.UK, paying VAT on imports). This calculator keeps to customs value plus duty, so if you pay onward delivery before the goods reach your warehouse, import VAT may come out a little higher.
- Landed cost per unit. Everything above, plus clearance and handling fees, divided by the units in the shipment.
Margins
Gross margin is your net selling price (after the VAT you pay over, if you're registered and your price includes it) less landed cost per unit. Margin after fulfilment also takes off pick, pack and packaging for each unit: the fulfilment cost per order divided by the units in an order.
Units to recover the shipment
How many units you need to sell to earn back what the whole shipment cost to land. Each sale brings in your net selling price less that unit's fulfilment, so the shipment's landed cost is divided by that. If the answer is more than the units you shipped, selling every one still won't earn the outlay back at this price.
Landed cost or clearance cost?
This tool is about pricing and profit: what one unit costs you and what you keep when you sell it. To find your commodity code and the duty and VAT on a single shipment, use the HS code lookup.
Landed cost, explained
The questions behind the number.
Know your numbers. Now find the right 3PL.
We match consumer brands with vetted 3PL and fulfilment partners across the UK, EU and US, so fulfilment cost is a number you chose, not one you inherited. Up to three matches, 0% commission to brands.