Landed Cost Calculator

Calculate total landed cost including product value, shipping, insurance, customs duty, import tax/VAT, and fees with a clear breakdown.

Calculate Your Landed Cost

Your Results

726.90

Total Landed Cost

Breakdown

CIF (Value + Shipping + Insurance)

565.00

Customs Duty

28.25

Import Tax / VAT

118.65

Handling / Processing Fees

15.00

Other Fees

0.00

Key Concepts

CIF

Cost + Insurance + Freight. Often used as the base for duty.

Customs Duty

Commonly applied to CIF. Rate depends on HS code and country.

Import Tax / VAT

Often applied to CIF + Duty. Jurisdiction-specific rules vary.

Fees

Handling, brokerage, storage, and other charges by carriers or agents.

How to Calculate Landed Cost

Formula

CIF = Product Value + Shipping + Insurance

Customs Duty = CIF × Duty%

Import Tax / VAT = (CIF + Duty) × Import Tax%

Total Landed Cost = CIF + Duty + Import Tax + Fees

Calculation Steps:

1
Compute CIF
Value + Shipping + Insurance
2
Calculate Duty
Duty = CIF × Duty%
3
Calculate Import Tax / VAT
Import Tax = (CIF + Duty) × Import Tax%
4
Sum Up
Total = CIF + Duty + Import Tax + Fees

Important Considerations

⚠️ Regulatory Disclaimer

Rules vary by country and product (HS code). Always verify with your customs authority and tax agency.

📦 HS Code Matters

Duty depends on HS classification and trade agreements.

• Prefer official tariff database
• Check origin-based preferential rates

🧾 VAT / Import Tax Base

Often CIF + Duty; some places differ (e.g., include fees).

• Confirm local calculation base
• Track de minimis thresholds

🚚 Incoterms

Incoterms affect which costs belong to buyer vs seller.

• CIF/CIP vs FOB/EXW implications
• Clarify responsibility for freight/insurance

🕘 Storage / Demurrage

Possible additional costs not in base formula.

• Terminal handling charges
• Storage or demurrage fees

Example Cases

Case 1: Consumer Electronics (EU)

Inputs: Value 500, Shipping 60, Insurance 5
Rates: Duty 5%, VAT 20%
Fees: Handling 15, Other 0

Total Landed Cost: 726.90
Breakdown: CIF 565.00, Duty 28.25, VAT 118.65, Fees 15.00

Notes: VAT applied to CIF + Duty is common in the EU; verify local rules.

Case 2: Apparel (US)

Inputs: Value 300, Shipping 40, Insurance 0
Rates: Duty 8%, Import Tax 0% (no federal VAT)
Fees: Handling 25, Other 10

Total Landed Cost: 402.20
Breakdown: CIF 340.00, Duty 27.20, Import Tax 0.00, Fees 35.00

Notes: US has no federal VAT; state taxes or fees may apply separately.

Frequently Asked Questions

What is landed cost?

Landed cost is the total cost of a product once it has arrived at the buyer’s destination, including product value, shipping, insurance, customs duty, import taxes (e.g., VAT), handling and other fees.

How are customs duty and import tax (VAT) calculated?

A common practice is: Duty is applied to CIF (cost + insurance + freight). Import tax/VAT is then applied to CIF + Duty. Some jurisdictions may use different tax bases; always check local regulations.

Do minimum thresholds or exemptions apply?

Many countries have de minimis thresholds for duty/VAT. If the product value is below a threshold, duty or VAT may be waived. Thresholds vary by country and change over time.

Are duty and VAT rates included in this tool?

No. Rates vary by HS code and country. This tool lets you input your own duty and VAT percentages to ensure compliance and accuracy for your specific case.

Where can I find authoritative rates and rules?

Refer to your national customs authority and tax agency. For general trade definitions, consult the WTO; for VAT guidance, consult the tax authority of the destination country.