Landed Cost Calculator

Landed cost is the total expense of getting an imported product from the supplier's facility to your warehouse door. It goes far beyond the invoice price — it captures every charge incurred along the supply chain: international freight, cargo insurance, customs duties, tariffs, government processing fees, customs broker charges, and domestic transportation.

For importers, accurately calculating landed cost is essential. It determines your true cost of goods sold (COGS), sets the floor for product pricing, and directly impacts your gross margins. Many importers underestimate landed cost by 15–30% when they only consider the product price and freight — forgetting that duties, tariffs, and fees can add up quickly, especially under the current multi-layered US tariff environment.

Components of Landed Cost

Product cost is the purchase price you pay the supplier. Under FOB terms, this covers manufacturing and loading onto the vessel. Under EXW, it only covers the goods at the factory gate.

International freight covers transportation from the origin country to the US port of entry. Ocean freight is priced per container (FCL) or per CBM/weight (LCL). Air freight is priced per kilogram with volumetric weight comparisons.

Cargo insurance typically runs 0.3–0.5% of the CIF value for standard goods. Marine cargo insurance protects against loss, damage, or theft during transit.

Customs dutiesare assessed on the entered value (generally CIF for US imports). The base rate depends on your product's HTS code. Additional tariffs may stack: Section 301 (China-specific), Section 232 (steel, aluminum, and copper — restructured April 2026), and Section 122 (10% universal tariff, effective February–July 2026). These tariffs are cumulative and can dramatically increase your duty burden.

Merchandise Processing Fee (MPF) is charged by CBP at 0.3464% of the entered value, with a minimum of $31.67 and maximum of $614.35 per formal entry.

Harbor Maintenance Fee (HMF) is 0.125% of the cargo value for ocean shipments, funding US port dredging and maintenance.

Customs broker fees range from $150–$400 per entry for standard formal entries. Complex entries with multiple HTS codes, government agency filings (FDA, EPA, DOT), or ISF bonds cost more.

April 2026 Tariff Updates

On April 2, 2026, the President issued a proclamation restructuring Section 232 tariffs. Steel, aluminum, and copper products are now subject to 50% tariffs, while derivative products made substantially of these metals face a 25% rate. The tariffs are assessed on the full customs value — not just the metal content — which significantly increases the cost impact for importers of downstream products like auto parts, machinery, and construction materials.

Additionally, CBP's CAPE (Consolidated Administration and Processing of Entries) tool launched on April 20, 2026, enabling importers to claim refunds for IEEPA-based tariffs paid before the Supreme Court ruling. If you paid IEEPA tariffs, see our CAPE Tool Guide for the step-by-step refund process.

For a complete breakdown of how these tariff layers stack and interact, see our Tariff Stacking Guide and Duty & Tariff Calculator.

What is landed cost?

Landed cost is the total price of an imported product once it arrives at your door. It includes the product purchase price, international shipping (freight), cargo insurance, customs duties and tariffs, government fees (MPF and HMF), customs broker charges, and domestic transportation. Knowing your landed cost is essential for accurate pricing, margin analysis, and sourcing decisions.

How do I calculate landed cost for imports to the US?

To calculate landed cost: (1) Start with the product purchase price. (2) Add international freight and cargo insurance to get the CIF value. (3) Apply customs duties — look up your HTS code for the base MFN rate, then add any additional tariffs like Section 301 (China), Section 232 (steel/aluminum/copper), or Section 122 (universal tariff). (4) Add the Merchandise Processing Fee (0.3464% of entered value, min $31.67, max $614.35). (5) For ocean freight, add the Harbor Maintenance Fee (0.125% of entered value). (6) Add customs broker fees and domestic freight to your final destination.

What is the Merchandise Processing Fee (MPF)?

The Merchandise Processing Fee (MPF) is a fee charged by U.S. Customs and Border Protection on most formal entries (valued over $2,500). The rate is 0.3464% of the entered customs value, with a minimum of $31.67 and a maximum of $614.35 per entry. MPF applies regardless of whether duties are owed.

What is the Harbor Maintenance Fee (HMF)?

The Harbor Maintenance Fee (HMF) is a 0.125% fee on the value of imported cargo arriving at U.S. ports by ocean vessel. It funds the Harbor Maintenance Trust Fund, which pays for dredging and maintaining federal navigation channels. HMF does not apply to air freight or ground shipments.

How do incoterms affect landed cost?

Incoterms determine which costs are included in the quoted product price. Under EXW or FOB, you pay freight and insurance separately — so these are added to landed cost. Under CIF, freight and insurance are already included in the price. Under DDP, the seller covers everything including duties. The incoterm affects your customs value calculation: U.S. Customs typically assesses duty on the transaction value, which includes freight and insurance for most entry types.

What tariff rates apply to US imports in 2026?

As of April 2026, US imports may be subject to multiple tariff layers: (1) Base MFN duty rate (varies by HTS code), (2) Section 301 tariffs on Chinese goods (25% for Lists 1-3, 7.5% for List 4A), (3) Section 232 tariffs on steel and aluminum products at 50% and derivatives at 25% (restructured April 6, 2026 to also cover copper), and (4) Section 122 universal tariff at 10% (Canada and Mexico exempt under USMCA). These tariffs stack on top of each other.