When to use this calculator
Before sending a PO, before quoting a wholesale price, before deciding between two suppliers in different countries — anywhere supplier price alone misleads you.
Inputs explained
Product cost is the EXW or FOB price your supplier quoted, per unit. Freight and insurance are total amounts for the shipment, not per unit. Customs duty is a percentage applied to CIF. Broker / port / local delivery / other are flat amounts.
Outputs explained
Total landed cost is your true cost basis for pricing. Per unit is what each unit really costs you. Cash at import includes VAT outlay, which matters for cash-flow planning even when VAT is recoverable later.
Worked example
You import 1,000 units at $4.00 each. Freight $600, insurance $40, duty 5%, broker $150, port handling $80, local delivery $120. CIF is $4,640, duty $232, total landed (excl. VAT) $5,222. Per-unit landed cost is $5.22 — not the $4.00 the supplier quoted.
Common mistakes
- Forgetting customs clearance and broker fees.
- Quoting margin off supplier price instead of delivered cost.
- Ignoring currency movement between PO and arrival.
- Treating VAT as a cost when it is actually recoverable.
- Forgetting last-mile local delivery to the warehouse.