User Rating 0.0
Total Usage 0 times
Is this tool helpful?

Your feedback helps us improve.

About

Importing products involves hidden costs that often destroy profit margins. The factory price is rarely the final cost. E-commerce sellers and importers use this tool to determine the absolute bottom-line cost per unit before setting a retail price. Accurate landed cost calculations account for freight, insurance, customs duties, and port handling fees. Ignoring these variables leads to selling inventory at a loss while believing it is profitable.

This calculator stacks every expense incurred from the factory floor to your warehouse door. It aggregates fixed costs and percentage-based tariffs to produce a singular unit cost. The integrated margin simulator allows you to test retail pricing scenarios against this true cost. This ensures your markup covers not just the item but the logistics and taxes required to acquire it.

ecommerce import export margin calculator customs duty freight cost

Formulas

The total landed cost is the sum of all expenses in the supply chain. The formula aggregates the commercial invoice value with logistics and compliance costs.

Ctotal = Pgoods + Cfreight + Cins + Tduty + Ttax + Fbank

Where Pgoods is the supplier invoice amount and Tduty is calculated as a percentage of the CIF (Cost, Insurance, Freight) or FOB value depending on local customs regulations. The per-unit cost is derived simply.

Costunit = CtotalQ

Reference Data

Product CategoryHS Code Range (Approx)Avg. Duty Rate (US/EU Estimate)VAT/GST Liability
Consumer Electronics8400-85000% - 2.5%High
Apparel (Cotton)6100-620012% - 16%Standard
Apparel (Synthetic)6100-620016% - 32%Standard
Footwear (Leather)64038% - 10%Standard
Footwear (Rubber/Plastic)640220% - 37.5%Standard
Home & Garden9400-96000% - 6%Standard
Toys & Games95030%Standard
Auto Parts87082.5%Standard
Handbags/Luggage420216% - 20%Standard
Watches9100Complex (Case+Strap+Mvmt)High

Frequently Asked Questions

Suppliers quote the Ex-Works (EXW) or Free on Board (FOB) price. This excludes shipping, insurance, import duties, harbor maintenance fees, and payment processing charges. These post-factory costs typically add 25-40% to the base product price.
It depends on the jurisdiction. In the EU and UK, duty is calculated on the CIF value (Cost + Insurance + Freight). In the US, duty is typically calculated on the FOB value (Cost of goods only), but other fees like MPF (Merchandise Processing Fee) apply to the total value.
The break-even price is exactly your Landed Cost per Unit. Selling below this figure results in a net loss. A healthy retail price is usually 2x to 3x the landed cost to cover marketing, returns, and operations.
These are charges by the freight forwarder or the destination port for moving containers, documentation (Bill of Lading), and clearing customs. They are often flat fees regardless of the goods' value.