Make-Buy, Outsourcing & Network Design worked example

Total Landed Cost at 110% duty and freight inclusion: a worked example

What does the result look like when duty and freight inclusion reaches 110%? The full calculation is worked below with real intermediate numbers. A buyer comparing two sourcing options on a fully landed basis rather than ex-works unit price.

The inputs for this scenario

  • Units shipped: 10,000 units (unchanged)
  • Landed cost per unit: 23.75 $/unit (unchanged)
  • Duty and freight inclusion: 110 % (raised for this scenario; the documented default is 100)
  • Customs brokerage and clearance fees: 4,800 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Landed cost = units x landed cost per unit x inclusion% + brokerage and clearance fees) to the inputs above produces each figure below.
  • At this operating point the engine returns 266,050 $ for total total landed cost, the number this scenario is built around.
  • At this operating point the engine returns 26.61 $ / piece for total landed cost per unit.
  • At this operating point the engine returns 261,250 $ for variable total landed cost.
  • At this operating point the engine returns 4,800 $ for fixed total landed cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where duty and freight inclusion sits at 100% and the headline result is 242,300 $, this scenario comes in 9.8% above the baseline at 266,050 $.
  • A figure at this level is achievable when duty and freight inclusion is genuinely sustained, not just peaked for a shift. 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.

Results at a glance

  • Total total landed cost: 266,050 $ (headline result)
  • Total landed cost per unit: 26.61 $ / piece
  • Variable total landed cost: 261,250 $
  • Fixed total landed cost adder: 4,800 $

Run it with your numbers

  • Every input above is editable in the live Total Landed Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.