What is landed cost?
Landed cost is the cost of acquiring a product and getting it ready at your destination. This tool totals one shipment of identical, equal-cost units. It starts with product cost, subtracts supplier credits, adds the eligible batch costs you enter, and divides by units acquired.
Formula
Total landed cost = unit purchase cost × quantity − supplier credits + eligible inbound batch costs
Average landed cost per unit = total landed cost ÷ quantity
Use batch costs and avoid counting the same invoice twice
Enter freight, duties, brokerage, insurance, preparation and other costs for the whole batch. Product cost is the only money input per unit. If your supplier price already includes delivery or duties, enter zero for those additional charges. Use actual amounts from invoices and your customs broker; this tool does not classify products or quote import taxes.
All amounts are USD. Convert foreign-currency invoices to a consistent USD basis before entering them. Include only taxes and preparation costs that belong in your inventory cost under your accounting policy. Do not include recoverable VAT or GST as a cost when your records treat it as recoverable. The tool does not decide recovery eligibility.
Landed cost formula and example
At $8 per unit for 500 units, goods cost is $4,000. A $100 supplier credit leaves $3,900. Freight of $400, duties of $200, brokerage of $100, insurance of $50 and preparation of $150 add $900. Total landed cost is $4,800, or $9.60 per unit.
| Line item | Amount |
|---|---|
| Goods cost (500 units × $8) | $4,000 |
| Supplier credit | −$100 |
| Net goods cost | $3,900 |
| Freight | $400 |
| Duties | $200 |
| Brokerage | $100 |
| Insurance | $50 |
| Preparation | $150 |
| Additional batch costs | $900 |
| Total landed cost | $4,800 |
| Average per unit | $9.60 |
Use the result to check pricing
Take the unit cost to the margin and markup calculator, or check selling costs with the Amazon and eBay profit calculators. Keep outbound customer shipping, marketplace fees and advertising in those tools’ separate selling-cost fields.
Is landed cost the same as COGS?
Landed cost helps value acquired inventory. Buying inventory does not mean every acquired unit was sold in that period. Use the COGS calculator for beginning inventory plus net additions minus ending inventory.
What if the shipment has multiple products or damaged units?
Use this calculator for one group of identical units with the same acquisition cost. Mixed products can require allocation by weight, value or another documented basis. Damaged goods, write-downs and shortages need separate accounting treatment; dividing all shipment costs among the remaining units is not automatically appropriate.
Money inputs accept cents. The batch total is exact to cents; per-unit amounts are averages and may need more than two decimals. Use the batch total for reconciliation rather than multiplying a rounded unit average.
Questions sellers ask
What if my supplier price already includes delivery or duties?
Enter zero for those additional charges so you do not count the same invoice twice. Use actual amounts from invoices and your customs broker. This tool does not classify products or quote import taxes.
Should I include VAT or GST in landed cost?
Include only taxes and preparation costs that belong in your inventory cost under your accounting policy. Do not include recoverable VAT or GST as a cost when your records treat it as recoverable. The tool does not decide recovery eligibility.
Can I enter foreign-currency invoices?
All amounts are USD. Convert foreign-currency invoices to a consistent USD basis before entering them.
Why does the batch total matter more than the unit cost?
The batch total is exact to cents. Per-unit amounts are averages and may need more than two decimals. Use the batch total for reconciliation rather than multiplying a rounded unit average.
IRS Publication 334 explains purchase reductions, freight-in and ending inventory in the COGS calculation. OpenStax’s inventory-system explanation describes the periodic rollforward. Sources reviewed October 14, 2026. Cost treatment depends on your records and accounting policy.
Explore more seller tools and Taxomate’s supported accounting workflows for recording actual marketplace fees and settlements.