How do you calculate landed cost?

Multiply quantity by variable cost per unit, then add fixed labor or setup and overhead burden. For 1,000 units at $12, plus $1,800 setup and $600 burden, total landed cost is $14,400 and cost per unit is $14.40.

What is the difference between landed cost and unit price?

Unit price is the variable per-piece figure ($12 here). Landed cost folds in fixed adders that don't scale with volume, so the true cost per unit ($14.40) is higher. Quoting off unit price alone leaves setup and overhead unrecovered.

Why is my cost per unit higher than the variable cost?

Because fixed adders are spread across the run. In the example $2,400 of setup and burden divided over 1,000 units adds $2.40/unit, pushing $12 variable up to $14.40 landed.

How does order quantity affect landed cost per unit?

Fixed adders are constant, so larger runs spread them thinner. The same $2,400 over 2,000 units adds only $1.20/unit instead of $2.40, which is why small batches carry a higher per-piece penalty.

What should go into the burden or overhead field?

Allocated indirect costs for the job — facility, utilities, equipment depreciation, indirect labor and QA — anything not captured in the variable per-unit cost or the specific setup line. Use your shop's overhead rate applied to the job.

Supply Chain & Procurement calculator

Landed Cost Calculator

Landed cost is the all-in cost to get a quantity of parts ready and accounted for — variable per-unit cost plus the fixed adders like setup, labor and overhead burden that a naive per-piece quote leaves out. Buyers, estimators and cost engineers use it to compare suppliers, set sell prices and decide whether a job is worth running. The trap with per-unit pricing is that it hides the fixed costs that don't scale with volume: a $12/part quote looks fine until $2,400 of setup and burden lands on a 1,000-piece order. Calculating landed cost forces those adders into the open so the cost per unit you quote from is the real one.

What this calculator does

Estimate landed cost from item cost, freight, duties, and handling burden.
Use it when landed cost in supply chain and procurement is being quoted and you need a number you can defend on a phone call.
It sums variable cost across the order quantity with fixed labor/setup and overhead burden to produce a total landed cost and a true blended cost per unit.

Formula used

Total cost = quantity × variable cost + labor/setup + burden

Inputs explained

Units in shipment: Number of units in the shipment.
Ex-works unit price: Supplier price per unit before logistics.
Freight and duty: Total inbound freight plus customs duty for the shipment.
Brokerage and handling: Customs brokerage, insurance, and handling fees.

How to use the result

Use it when quoting a job, comparing supplier bids, or validating that a per-piece price covers setup and overhead.
It treats labor/setup and burden as single lump sums and assumes variable cost is constant per unit — it won't model volume price breaks, scrap or freight unless you fold them into the inputs.

Current U.S. benchmarks

U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, May 2026). New factory orders are up 2.3% year over year (Census).
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 landed cost? Multiply quantity by variable cost per unit, then add fixed labor or setup and overhead burden. For 1,000 units at $12, plus $1,800 setup and $600 burden, total landed cost is $14,400 and cost per unit is $14.40.
What is the difference between landed cost and unit price? Unit price is the variable per-piece figure ($12 here). Landed cost folds in fixed adders that don't scale with volume, so the true cost per unit ($14.40) is higher. Quoting off unit price alone leaves setup and overhead unrecovered.
Why is my cost per unit higher than the variable cost? Because fixed adders are spread across the run. In the example $2,400 of setup and burden divided over 1,000 units adds $2.40/unit, pushing $12 variable up to $14.40 landed.
How does order quantity affect landed cost per unit? Fixed adders are constant, so larger runs spread them thinner. The same $2,400 over 2,000 units adds only $1.20/unit instead of $2.40, which is why small batches carry a higher per-piece penalty.
What should go into the burden or overhead field? Allocated indirect costs for the job — facility, utilities, equipment depreciation, indirect labor and QA — anything not captured in the variable per-unit cost or the specific setup line. Use your shop's overhead rate applied to the job.

Last reviewed 2026-05-12.