Landed cost
| Line | Amount (USD) |
|---|---|
| Goods (FOB × units) | 0 |
| Freight | 0 |
| Import duty | 0 |
| Additional measures | 0 |
| Local delivery & fees | 0 |
| Total landed | 0 |
| Landed cost per unit | 0 |
Where each number comes from
| Input | What it is | Where the number comes from |
|---|---|---|
| FOB unit price | The price of the garment leaving the factory, before freight | Your supplier’s quotation, at the specification you are actually buying |
| Units | Pieces in this shipment | Your order confirmation |
| Freight | Total international freight and insurance for the shipment | Your forwarder’s quotation; who pays it follows the Incoterm you agreed |
| Duty rate | The rate for your commodity code in the destination market | The destination’s official tariff, read against the full national line |
| Additional measures | Origin-specific tariffs on top of the base rate | The same official tariff, checked on the day you cost the programme |
| Local delivery and fees | Port to warehouse, customs broker, handling | Your broker’s or forwarder’s quotation |
A worked example
Illustrative inputs only — these are not our prices and not a quotation. They exist so you can see the arithmetic before entering your own numbers.
| Line | Illustrative input | How it is calculated |
|---|---|---|
| Goods | FOB 10.00 × 500 units = 5,000 | FOB unit price multiplied by units |
| Freight | 800 for the shipment | Entered as a shipment total, not per unit |
| Duty base | 5,800 | Goods plus freight, the CIF-style basis used here |
| Duty at an illustrative 12 | 696 | Duty base multiplied by the rate you looked up |
| Local delivery and fees | 450 | Entered as a shipment total |
| Total landed | 6,946 | Goods + freight + duty + measures + local |
| Landed cost per unit | 13.89 | Total landed divided by units |
The point of the example is the gap: a garment quoted at 10.00 lands at 13.89 in this scenario, and a retail margin built on the quotation rather than on the landed figure is short by that difference on every piece.
How the calculation works
Landed cost = goods (FOB × units) + international freight + import duty + any additional trade measures + local delivery and fees. Duty here is calculated on goods + freight, which approximates the CIF basis most markets use; the United States assesses duty on the FOB customs value instead, so for US imports the duty line shown is slightly conservative.
The duty rate is not a guess — it follows from your product’s HS classification in the destination’s official tariff. Look the code up first, then enter the current rate: our activewear HS code and duty reference lists the common classifications and links to each official lookup. Additional measures (such as US Section 301 tariffs on China-origin goods) change with trade policy — verify the current figure at the official source before costing a program.
What this tool does not model: VAT and import GST (recoverable for registered businesses in most markets, so they are working capital rather than cost), currency movement between order and payment, and quota or preference programs. For how the full cost stack is built, see the activewear manufacturing cost guide.
Sources
- Harmonized Tariff Schedule of the United States — the official US classification and rate lookup
- TARIC consultation — the EU’s integrated tariff
- UK Trade Tariff — commodity codes and rates for imports into the UK
- 19 CFR Part 152 — Classification and Appraisement of Merchandise — how US customs value is determined
- ICC Incoterms® rules — which party carries freight, insurance and import formalities
- International Trade Administration — US government guidance for importers
Links checked 18 September 2026.
Questions
What is landed cost, in one sentence?
The total cost of getting one unit into your warehouse: the goods themselves, international freight, import duty and any additional trade measures, plus local delivery, broker and handling fees — divided by the number of units.
Is duty calculated on the FOB price or on FOB plus freight?
It depends on the market. The United States assesses duty on the customs value of the goods, broadly the FOB price, while the EU assesses on the CIF value, which includes freight and insurance. This calculator applies the rate to goods plus freight, so for a US import the duty line it shows is slightly conservative.
Where do I get the duty rate?
From the destination market’s official tariff, against the full national commodity code for your garment — not from a summary table. Classify first, then read the rate, then note the date you read it.
Why is VAT not included?
Because for a VAT-registered business in most markets it is recoverable, which makes it working capital rather than cost. It still has to be financed at the border, so plan the cash even though it does not belong in the margin calculation.
What does this calculator deliberately leave out?
Currency movement between order and payment, quota and preference programmes, duty drawback, and the cost of capital tied up between deposit and sale. Each of those is real and none of them is a single percentage that can be printed on a page.
Should samples and labels go into landed cost?
Keep them separate. Sampling and label development are one-off programme costs, not per-unit import costs; folding them into landed cost makes the first order look expensive and every reorder look cheaper than it is.
My freight quote is per container. How do I enter it?
Enter the total freight for the shipment, not a per-unit figure — the calculator divides by units at the end. If the container carries several styles, split the freight by the share of volume each style occupies rather than by piece count.
Can import duty be capitalised into the cost of inventory?
In most accounting frameworks, yes: duty you cannot recover is part of what the goods cost you, alongside the purchase price and freight to your warehouse, while recoverable taxes such as reclaimable import VAT are not. That is also why landed cost, not FOB, is the right base for a margin. Confirm the treatment with your accountant for your jurisdiction.
Is there an import duty calculator for the US, UK, Canada or Australia?
Each market publishes its official tariff — the USITC Harmonized Tariff Schedule for the US, the UK Trade Tariff, Canada’s Customs Tariff and the Australian customs tariff — and that is where the rate for your commodity code and origin comes from. Read the rate on the full national line, then use this calculator for the arithmetic with your own freight and fee quotes.
What goes into the landed cost of women’s workout clothes?
The garments at their FOB price, international freight and insurance, import duty on the correct commodity code, any additional measures that apply to the origin, customs brokerage and port fees, and delivery to your warehouse. Import VAT or GST is usually recoverable for a registered business, so it is cash flow rather than cost. The worked example on this page shows the arithmetic.