Landed Cost Calculator Import Guide

Quoting a product price to a customer without knowing the true landed cost is how import businesses lose money. The supplier's FOB price is just the starting point — add freight, insurance, customs duty, port handling, agency fees, and inland transport, and your cost per unit can jump 30–50% or more. This guide explains landed cost formula, what to include, and how to use Pitara's free landed cost calculator India for pricing imports accurately.

What is landed cost?

Landed cost is the total cost to get goods from your supplier's factory to your warehouse or customer's door — including every fee along the way. It answers the question: "What did each unit actually cost me by the time I can sell it?"

Landed cost components typically include:

• Product cost (FOB or ex-factory price)
• Ocean/air freight to Indian port
• Marine insurance
• Customs duty (BCD + SWS + IGST)
• Port handling and terminal charges
• CHA (Customs House Agent) fees
• Inland transport from port to warehouse
• Other charges (fumigation, inspection, storage)

Landed cost formula (simplified)

At its core:

Total Landed Cost = Product Cost + Freight + Insurance + Customs Duty + Other Charges

Cost Per Unit = Total Landed Cost ÷ Quantity

For customs duty specifically, use the breakdown from our Customs Duty Calculator — BCD on assessable value, SWS on BCD, IGST on the combined base. Enter the total duty figure into the landed cost calculator along with other charges.

FOB vs CIF — where to start

FOB (Free on Board): Supplier delivers goods to the port; you pay freight and insurance separately. Enter product cost, then add freight and insurance as separate line items in the calculator.

CIF (Cost, Insurance, Freight): Supplier quote includes product + freight + insurance to Indian port. You can enter the CIF total as product cost, then add duty and local charges on top.

Be consistent — do not double-count freight if it is already in your CIF figure.

Step-by-step: use the Landed Cost Calculator

1. Open Landed Cost Calculator.
2. Enter product cost in INR (convert foreign currency if needed).
3. Add freight and insurance amounts separately.
4. Enter customs duty — use percentage or fixed amount from duty calculator.
5. Add port handling, CHA fees, and other charges.
6. Set quantity to see total landed cost and cost per unit.

Worked example — importing 1,000 units

Suppose you import 1,000 widgets from China:

• FOB product cost: ₹5,00,000 (₹500/unit)
• Freight: ₹80,000
• Insurance: ₹5,000
• Customs duty (BCD+SWS+IGST): ₹1,20,000
• Port + CHA + transport: ₹45,000

Total landed = ₹7,50,000 → ₹750 per unit (not ₹500). If you sell at ₹650 thinking your cost is ₹500, you lose ₹100 on every unit.

Using landed cost for pricing decisions

Once you have cost per unit, add your target margin:

Selling Price = Landed Cost Per Unit × (1 + Margin %)

Use the GST Calculator to add or remove GST from your selling price. Compare suppliers by calculating landed cost for each quote — the cheapest FOB is not always the cheapest landed.

Landed cost vs customs duty — do not confuse them

Customs duty is one line item inside landed cost. Many traders calculate duty correctly but forget port charges, demurrage, or inland transport. The Customs Duty Calculator handles duty breakdown; the Landed Cost Calculator wraps everything into one per-unit figure for business decisions.

CBM and freight planning

Freight quotes depend on volume and weight. Before finalizing landed cost, estimate your shipment CBM with the CBM Calculator to validate freight quotes from your forwarder. Wrong CBM estimates lead to wrong freight in your landed cost model.

Common mistakes

• Using FOB price as landed cost without adding freight and duty
• Forgetting IGST is calculated on AV + BCD + SWS, not AV alone
• Ignoring port detention/demurrage in first-time imports
• Not updating exchange rate — use the rate from your proforma invoice date
• Quoting per-unit price without dividing total charges by quantity

Planning tool, not official assessment

Pitara's calculators help with quotations, supplier comparison, and margin planning. Official duty assessment happens at customs filing through your CHA. Always verify HS codes and rates on ICEGATE before committing to a purchase order.

Calculate your true import cost now: Landed Cost Calculator. Full toolkit at Import/Export & Logistics.