How do you calculate total landed cost?

Multiply units shipped by landed cost per unit, apply the duty-and-freight inclusion percentage, then add fixed brokerage and clearance fees. For 10,000 units at $23.75 with 100% inclusion plus $4,800 fees, total landed cost is $242,300 and $24.23 per piece.

What does the duty and freight inclusion percentage do?

It scales the variable landed cost to reflect how much duty and freight are already loaded into the per-unit figure. At 100% the per-unit cost is taken in full; a higher percentage would add an uplift for duty and freight not yet captured in the unit price.

Why is cost per piece higher than landed cost per unit?

Because fixed brokerage and clearance fees spread across the shipment. Here $4,800 over 10,000 units adds $0.48/piece, lifting $23.75 to $24.23. On a smaller shipment that fixed fee would sting far more per piece.

Total landed cost vs FOB price — which should I compare suppliers on?

Always total landed cost. FOB or ex-works ignores freight, duty and clearance, which can add double digits of percent. A supplier with a lower FOB price can easily lose once the $24.23 all-in figure is computed for each.

How do brokerage fees affect small versus large shipments?

Fixed clearance and brokerage fees are nearly constant per shipment, so they dilute on large orders and dominate on small ones. The $0.48/piece in the example would balloon if only 1,000 units shipped against the same $4,800.

Make-Buy, Outsourcing & Network Design calculator

Total Landed Cost Calculator

Total landed cost is the fully-burdened cost of getting imported or outsourced units to your dock — the per-unit landed price scaled by a duty-and-freight inclusion factor, plus fixed customs brokerage and clearance fees. Sourcing managers, network-design analysts and make-buy teams use it to compare a domestic supplier against an overseas one on an apples-to-apples basis. A low FOB unit price overseas often evaporates once duty, freight and clearance are layered in, and a fixed brokerage fee hits small shipments hardest. Computing total landed cost is what stops a sourcing decision from being made on the misleadingly cheap quoted price.

What this calculator does

Roll up the true delivered cost of goods including freight, duty, and clearance, not just the supplier price.
A buyer comparing two sourcing options on a fully landed basis rather than ex-works unit price.
It computes total landed cost as units times per-unit landed cost times a duty-and-freight inclusion percentage, plus fixed customs brokerage and clearance fees, then derives the true cost per piece.

Formula used

Landed cost = units x landed cost per unit x inclusion% + brokerage and clearance fees
Landed cost per unit = total landed cost / units shipped

Inputs explained

Units shipped: Quantity of product moving through the supply lane
Landed cost per unit: Unit price plus freight, duty, and handling per unit
Duty and freight inclusion: Percent of landed elements applicable to this lane
Customs brokerage and clearance fees: Fixed per-shipment brokerage and clearance cost

How to use the result

Use it when comparing overseas versus domestic supply, evaluating a network-design change, or validating an import quote before committing volume.
It models inclusion as a single percentage multiplier and fees as one lump sum — it won't break out tariff lines, currency swings, or inventory carrying cost from longer lead times.

Current U.S. benchmarks

Sourcing currencies as of 2026-07-02 (Federal Reserve H.10): 6.7886 CNY and 17.4524 MXN per USD. Landed-cost comparisons move with these daily rates.
U.S. iron and steel imports ran $2.1B in May 2026 (Census International Trade). The U.S. ran a trade deficit of $0.4B in the category that month. Import volumes are the pressure gauge behind tariff and reshoring decisions.

Common questions

How do you calculate total landed cost? Multiply units shipped by landed cost per unit, apply the duty-and-freight inclusion percentage, then add fixed brokerage and clearance fees. For 10,000 units at $23.75 with 100% inclusion plus $4,800 fees, total landed cost is $242,300 and $24.23 per piece.
What does the duty and freight inclusion percentage do? It scales the variable landed cost to reflect how much duty and freight are already loaded into the per-unit figure. At 100% the per-unit cost is taken in full; a higher percentage would add an uplift for duty and freight not yet captured in the unit price.
Why is cost per piece higher than landed cost per unit? Because fixed brokerage and clearance fees spread across the shipment. Here $4,800 over 10,000 units adds $0.48/piece, lifting $23.75 to $24.23. On a smaller shipment that fixed fee would sting far more per piece.
Total landed cost vs FOB price — which should I compare suppliers on? Always total landed cost. FOB or ex-works ignores freight, duty and clearance, which can add double digits of percent. A supplier with a lower FOB price can easily lose once the $24.23 all-in figure is computed for each.
How do brokerage fees affect small versus large shipments? Fixed clearance and brokerage fees are nearly constant per shipment, so they dilute on large orders and dominate on small ones. The $0.48/piece in the example would balloon if only 1,000 units shipped against the same $4,800.

Last reviewed 2026-05-12.