Landed Cost is the total cost of an imported product delivered to your warehouse, including: FOB price + international freight + insurance + import duties + customs fees + other internment costs. It is the basis for calculating your sale price and profit margin.

Why use FOB as the calculation base instead of EXW?

FOB (Free On Board) is the most common Incoterm for imports from Asia. It includes the product cost plus all expenses until the goods are on board the vessel at the origin port. EXW (Ex Works) only includes the product at the factory, leaving the importer to coordinate inland transport in China, which is more complex and risky for new buyers.

What is CIF and how is it calculated?

CIF stands for Cost, Insurance and Freight. It is calculated as: CIF = FOB + International Freight + Insurance. Insurance is typically 0.3%-1% of (FOB + Freight). The CIF value is the base on which import duties are calculated in most Latin American countries.

Why does the calculator exclude VAT/IVA?

Import VAT/IVA is generally recoverable as a tax credit for formally registered businesses. Therefore, it does not affect the actual product cost but rather cash flow. The calculator focuses on non-recoverable costs that directly impact your sale price and margin.

What is the import factor?

The import factor is the ratio between Landed Cost and FOB (Landed ÷ FOB). For example, a factor of 1.50 means your final cost is 50% higher than the FOB price. This factor varies by destination, product type, and duties, typically ranging from 1.30 to 1.80 for China-to-Latin-America imports.

What is the difference between markup and margin?

Markup: percentage on cost. A 40% markup on a $1.00 cost = $1.40 price. Margin: percentage of sale price. A 40% margin means cost is 60% of sale price. With $1.00 cost and 40% margin, price = $1.67. Margin always requires a higher percentage to achieve the same price as markup.

What customs fees should I include?

Typical fees include: customs broker fees, terminal handling charges (THC), storage, documentation, inspections (if applicable), local freight to warehouse, and other minor fees. These vary by country and agent, typically totaling $150-$500 USD for small shipments.

Does this calculator work for any country?

Yes, the calculation logic is generic and applies to any country. However, duty rates (DAI/tariffs) vary by product HS code and destination country. Consult your country's current tariff schedule for the correct rate. The calculator does not include country-specific rates.

Landed Cost Estimator

Calculate your total import cost including FOB, freight, insurance, duties, and fees.

FOB Items

Enter your products to calculate total FOB value

$0.00

Name (Optional)

Qty

FOB/Unit (USD)

FOB Total

$0.00

Total Units

Import Guide

Learn how to calculate the total cost of your imports

📦 Practical Example: Cleaning Cloths

Importing microfiber cleaning cloths 30×30 from China to Guatemala

Input data:

• Product: Blue cleaning cloth 30×30
• Quantity: 10,000 units
• FOB unit: $0.35 USD
• FOB Total: $3,500 USD
• Ocean freight: $900 USD
• Insurance: 0.5%
• Duty (DAI): 10%
• Customs fees: $250 USD
• Other fees: $150 USD

Results:

FOB Total$3,500.00
Freight$900.00
Insurance (0.5% of $4,400)$22.00
CIF$4,422.00
Duty (10% of CIF)$442.20
Customs fees$250.00
Other fees$150.00
TOTAL LANDED COST$5,264.20

Key metrics:

Import factor: 1.504(cost 50.4% higher than FOB)
Landed unit cost: $0.5264(vs $0.35 FOB)
With 40% markup: $0.7370 sale/unit
With 40% margin: $0.8773 sale/unit

💡 This example excludes VAT because it's recoverable. Final consumer price should include applicable VAT.

CBM Calculator Import Guides

Landed Cost Estimator

FOB Items

Import Guide

What is Landed Cost?

FOB vs EXW: Why FOB is the Standard

CIF Explained (Cost, Insurance, Freight)

International Cargo Insurance

Import Duties and Taxes

Customs and Internment Fees

Import Factor: Your Cost Multiplier

Markup vs Margin: How to Calculate Your Price

📦 Practical Example: Cleaning Cloths

Input data:

Results:

Key metrics:

Landed Cost Estimator

FOB Items

Import Guide

What is Landed Cost?

FOB vs EXW: Why FOB is the Standard

CIF Explained (Cost, Insurance, Freight)

International Cargo Insurance

Import Duties and Taxes

Customs and Internment Fees

Import Factor: Your Cost Multiplier

Markup vs Margin: How to Calculate Your Price

📦 Practical Example: Cleaning Cloths

Input data:

Results:

Key metrics: