Free FBA tool
Landed Cost Calculator
Your numbers
Sourcing from China? Add your base HTS rate plus any Section 301 tariff. The combined rate is often 25 to 50%+. Unsure? Check your CBP entry summary (CF-7501) or ask your broker.
Landed cost / unit
$10.60
Freight, duty, and fees add 1.77x on your $6.00 supplier price, a 76.7% import uplift. This is the true cost to drop into your profit math.
Freight / unit
$3.00
Total freight / units
Duty / unit
$0.60
10% of product
Landed multiple
1.77x
Landed / supplier price
Shipment cost
$5,300.00
500 units landed
Inventory Hero
Keep landed cost current on every SKU
This page lands one shipment. Inventory Hero stores landed cost per SKU and updates it as freight rates and supplier prices move, so your margin and reorder math always run on what units actually cost, not last year's quote.
- Landed cost per SKU, rolled into true net profit
- Updates as freight and supplier prices change
- Flags products whose margin import costs have quietly eroded
No credit card required.
How landed cost is calculated
Landed cost per unit
Landed = supplier price + freight/unit + duty + prep + other fees
Freight and other shipment-level fees are divided by the number of units. Duty is the duty rate times the product value. The result is your true cost of goods per unit, before any Amazon selling fees.
Worked example
A unit costs $6 FOB from the factory. You order 500 units, pay $1,500 in freight for the shipment, owe 10% customs duty, spend $0.50 per unit on prep, and pay $250 in broker and insurance fees.
- Freight per unit: $1,500 / 500 = $3.00
- Duty per unit: 10% of $6 = $0.60
- Other fees per unit: $250 / 500 = $0.50
- Landed cost: $6 + $3 + $0.60 + $0.50 + $0.50 = $10.60 per unit, about 1.77x the FOB price
The 10% duty here is illustrative. Your real rate depends on your HTS code and country of origin; goods from China usually carry a base rate plus a Section 301 tariff, often 25 to 50%+ combined. For ocean freight from China, a landed multiple of about 1.5x to 2.2x is common; air freight can push it past 3x.
Carry that $10.60 into the FBA profit calculator as your unit cost to see real margin after Amazon's fees, then size orders with the EOQ calculator.
Key terms
- FOB price
- Free On Board: the supplier's price for the goods loaded at the origin port, before international freight and duty. It is the starting point for landed cost, and the number suppliers usually quote.
- Customs duty (HTS)
- The import tax set by your product's HTS (Harmonized Tariff Schedule) code, charged as a percent of the goods' value, plus any Section 301 tariff. Look up your code to get the rate; it ranges from 0% to well over 20%.
- Freight allocation
- Spreading the shipment's total freight across its units. More units per shipment means less freight per unit, which is one reason ordering quantity affects your true cost of goods.
Frequently asked questions
What is landed cost?
Landed cost is the all-in cost to get one unit to its destination, ready to sell: the supplier (FOB) price plus freight, customs duty, and any other import or prep fees. It is your true cost of goods for an imported product, and the number you should use for margin and ROI, not the bare factory price.
How do you calculate landed cost per unit?
Take the supplier price per unit, add the shipment freight divided by the number of units, add the customs duty (the duty rate times the product value), and add any per-unit prep and allocated other fees. For a $6 FOB unit, 500 to a shipment with $1,500 freight ($3 per unit), 10% duty ($0.60), $0.50 prep, and $250 of other fees ($0.50 per unit), the landed cost is $10.60 per unit, about 1.77 times the factory price.
Is duty charged on the product cost or on the freight too?
For US imports, customs duty is assessed on the transaction value, which is the FOB price for most ocean shipments, so charging duty on your FOB price here is accurate, not a simplification. CIF valuation (goods plus freight and insurance) is used by the EU and many other countries, not the US. If you are importing into one of those, nudge the rate up to match. If you are unsure which basis was used, your CF-7501 customs entry summary shows the assessed value; divide your total duty paid by that value to get your effective rate.
Why does landed cost matter for Amazon FBA?
Because freight and duty can add 50% or more on top of the factory price, the supplier quote badly understates what a unit really costs you. Using FOB price instead of landed cost in your profit math overstates margin and can make a money-losing product look profitable. Landed cost is the unit cost to carry into your profit, ROI, and reorder calculations.
Does landed cost include Amazon FBA fees?
No. Landed cost stops at getting the unit ready to sell; it does not include Amazon's referral fee, fulfillment fee, or storage. Those come out of the sale, not the cost of goods. (If you want a true all-in cost, you can fold the FBA inbound placement fee into the prep field, since that is paid to get inventory into the network.) Calculate landed cost here, then drop it into the FBA profit calculator as your unit cost to see net profit after Amazon's fees.
Inventory Hero
Catch the cost creep before your next PO
Freight and tariffs move between orders. Inventory Hero tracks landed cost per SKU over time and flags when a product's true cost has drifted enough to change your margin, so your next purchase order is priced on today's reality, not the last shipment's.
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<p style="font:13px/1.5 system-ui,sans-serif;text-align:center;margin:8px 0 0"><a href="https://www.inventoryhero.ai/tools/landed-cost-calculator">Landed Cost Calculator</a> by Inventory Hero</p>See all our free Amazon FBA calculators.