Landed Cost Calculator Guide

Landed cost is the total cost of getting a product to your warehouse, including:

• Supplier price (ex-works or FOB)
• International freight (sea, air, or road)
• Import duty (based on HS code and origin country)
• UK VAT on import (20%, reclaimed on VAT return if VAT-registered)
• Customs clearance fees
• Insurance
• Currency conversion cost
• Last-mile delivery to warehouse

Many businesses underestimate landed cost by 15–30%, leading to margin miscalculations. This tool calculates it precisely.

1. Product details — name, quantity, unit value (in supplier currency)

2. Supplier country — determines applicable duty rate

3. HS Code — the product's Harmonised System classification. AskBiz can suggest the HS code if you describe the product.

4. Freight method — Sea (FCL/LCL), Air, Road

5. Freight cost — total or per-unit

6. Insurance — percentage or fixed amount

7. Your home currency — for final per-unit cost

An HS (Harmonised System) code is a 6–10 digit number that classifies your product for customs purposes. It determines your import duty rate. Examples:

• 6109.10 — T-shirts, cotton
• 8471.30 — Laptops
• 3304.99 — Cosmetics/beauty products

If you don't know your HS code, type the product description into the HS Code field and AskBiz will suggest the most likely code with its duty rate.

The calculator outputs:

• Unit landed cost — the total cost per unit in your home currency
• Total shipment cost — all costs combined
• Effective duty rate — actual duty paid as a % of supplier price
• True margin — if you enter your selling price, it shows your real margin after all costs
• Comparison by freight method — see how much you save/spend switching from air to sea freight