Landed Cost Calculator & Incoterms Guide
Turn a supplier quote into a realistic cost per unit delivered to your door.
Estimates only. Confirm with your carrier/forwarder.
The formula
CIF = goods + freight + insurance. Duty = rate × (CIF or FOB). Import VAT is usually charged on CIF + duty (this calculator follows that convention; some countries add local charges to the VAT base). Landed cost = CIF + duty + VAT + local charges, divided by units for the per-unit figure. If you can reclaim import VAT, subtract it from your true cost.
Worked example
Goods FOB 10,000, freight 1,200, insurance 50: CIF = 11,250. Duty at 6.5% on CIF = 731.25. VAT at 20% on 11,981.25 = 2,396.25. Add 400 local charges: landed cost 14,777.50, or 14.78 per unit across 1,000 units. All amounts are in whatever single currency you enter.
Incoterms 2020 in brief
| Term | Seller pays up to | What to add yourself |
|---|---|---|
| EXW | Goods ready at seller's premises | Export clearance, inland haulage, freight, insurance, import costs |
| FCA | Handover to buyer's carrier, export cleared | Main freight, insurance, import costs |
| FOB | Goods loaded on vessel at origin port | Ocean freight, insurance, import costs |
| CFR | Freight to destination port | Insurance, import costs |
| CIF | Freight + minimum insurance to destination port | Import costs (destination port charges vary) |
| DAP | Delivered to named place, not cleared | Duty, VAT, clearance |
| DDP | Delivered, duties paid | Usually nothing |
Under CFR or CIF, enter freight and insurance as 0 because they are already in the price. FOB, CFR and CIF are intended for sea and inland waterway transport; for containers or air, FCA, CPT and CIP are the closer equivalents.
FAQ
Does the customs duty apply to the FOB or CIF value?
It depends on the importing country. The EU, UK and many others assess duty on the CIF value; the USA, Canada and Australia generally use the FOB (transaction) value. Choose the basis your destination uses.
Where do I find my duty rate?
Look up your product's HS code in the importing country's official tariff database, or ask your customs broker.