Tool

Landed cost calculator

The unit price is not the cost. Put your numbers in and see what a unit actually costs by the time it is in your warehouse.

Your numbers

* required. Leave anything you do not know blank — it counts as zero, and the result tells you the floor rather than the number.

Your result appears here

The landed cost per unit, how far above the quoted price it sits, and a breakdown of every line that put it there.

What this does not include

Rework and defect allowance, duplicate inventory during a supplier transition, artwork and regulatory changes, and the cost of a launch date that moves. On the moves we have run, those have been the difference between a saving and a wash.

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What a landed cost includes

A supplier gives you a unit price. On a typical consumer goods import that price is somewhere between 60% and 80% of what the unit will actually cost you by the time it is in your warehouse. The gap is freight, duty, insurance, inspection, payment terms and the components the factory quoted separately.

The items people miss most often, in the order they cost the most: tooling amortised over the wrong volume; secondary packaging quoted per set rather than per unit; inspection and rework budgeted at zero; and the working capital cost of 60-day payment terms, which is real money even when nobody books it.

Read the full piece on landed cost →