Free calculator · landed cost

Landed cost calculator: the real cost of every unit.

Enter one shipment: units received, the supplier price, and what it cost to get the stock ready to sell. Get the landed cost per unit, and the margin it leaves next to the margin the supplier price suggests.

Works in your browser · pre-filled with a demo store's shipment of camp stoves

One shipment

After any discount.
Ocean, air or road freight for the whole shipment.
Leave blank if none.
Getting the stock to your warehouse, 3PL or fulfillment center, ready to sell.
To compare margin on landed cost with margin on supplier price.

Landed cost

ONE SHIPMENT · 400 UNITS · USD

Supplier invoice7,400.00
Freight, duty, fees & inbound costs2,200.00
Total landed cost9,600.00
Landed cost per unit24.00
Supplier price per unit18.50
Cost left out at supplier price5.50 / unit
Selling price per unit45.00
Margin on supplier price58.9%
Margin on landed cost46.7%
Margin overstated by12.2 points

DEMO OUTDOOR CO. FIGURES UNTIL YOU CHANGE THEM · NOT A CLIENT

Landed cost: 9,600.00 in total, 24.00 a unit.

How it's worked out

The landed cost formula.

Landed cost per unit = (units × supplier price + freight + duty + customs & port fees + inbound shipping and other costs) ÷ units received

Add up everything it took to get one shipment onto a shelf ready to sell, then divide by the units that arrived. The demo store buys 400 camp stoves at 18.50: the supplier invoice is 7,400.00, and freight, duty, broker fees and the truck to the warehouse add another 2,200.00. Total landed cost is 9,600.00, or 24.00 a unit, not 18.50.

Margin = (selling price − cost per unit) ÷ selling price

At a selling price of 45.00, the supplier price suggests a margin of 58.9%. Landed cost gives 46.7%. The 12.2-point gap is cost that was always there, just not in the price you planned with.

Costs of selling a unit once it is ready, such as marketplace fees, payment processing, advertising and shipping to the customer, stay out of landed cost. Put them in the marketplace profit calculator with this landed cost as the item cost. When one freight bill covers several products, split it on one basis, by units, weight or value, and use the same basis every time.

Go further

Landed cost on every shipment, in your books.

Our monthly e-commerce bookkeeping records landed cost on every shipment and keeps inventory and cost of goods sold current, with a gross margin by product you can price on.

Answer

What is landed cost? Formula and worked example for sellers

What goes in, what stays out, and what booking stock at the supplier price does to your margin.

Read the answer →

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