Guide

Landed cost formula for U.S. import sellers

Q: What is the basic landed cost formula?

The basic landed cost formula is product cost plus international freight, insurance, import duty, tariff overlays, MPF, HMF, brokerage, and other import-side charges. Divide the shipment total by quantity to estimate landed cost per unit.

Q: Are marketplace fees part of landed cost?

Marketplace fees are usually not part of customs landed cost, but sellers should include them in margin planning. Import Math separates import-side landed cost from marketplace fees and fulfillment so the profit calculation is clearer.

Q: Does landed cost include Section 301 tariffs?

For U.S. imports from China, Section 301 tariffs can apply on top of the base HTS duty rate. They should be included in a seller's landed cost estimate when the product and origin are subject to the additional duty.

Q: Can this formula replace a customs broker?

No. The formula is for planning. It does not classify goods, confirm origin, apply exclusions, or replace broker review for regulated or high-value shipments.

Landed cost is the full import-side cost of getting a product from the supplier to your warehouse, fulfillment center, or prep location. Use this formula before you approve a purchase order, wire a deposit, or set a marketplace price.

Open the landed cost calculator Compare multiple SKUs

Formula

How to calculate landed cost

Start with the supplier cost, add shipment-level import costs, then divide by quantity to get the per-unit landed cost.

Shipment landed cost

Product cost + freight + insurance + import duty + additional tariffs + MPF + HMF + brokerage + other import charges.

Per-unit landed cost

Shipment landed cost / quantity. This is the inventory cost floor before marketplace fees, outbound fulfillment, ads, returns, and overhead.

Seller margin estimate

Selling price - landed cost per unit - marketplace fee - fulfillment - flat fees. Import Math keeps these selling-side costs separate so you can see where margin disappears.

Worked example

Example: $4.25 product, 500 units, China origin

This is the kind of pre-purchase check a seller should run before deciding whether an imported product has enough room for fees and fulfillment.

Supplier cost 500 units x $4.25 = $2,125 customs value.

Import fees Base duty and Section 301 are estimated from the HTS duty stack. MPF and HMF are calculated at the shipment level.

Freight and brokerage Freight, insurance, brokerage, inspection, labeling, prep, port, and warehouse charges are spread across the shipment quantity.

Margin pressure Marketplace referral fees, payment fees, flat charges, and fulfillment are deducted after landed cost to estimate profit per unit.

Checklist

Inputs to verify before trusting a landed cost estimate

A calculator is only as reliable as the assumptions behind it. Check these items before committing to inventory.

HTS code and base duty

Verify the product classification in the official HTS search or with a licensed customs broker. Similar products can land in different classifications.

Country of origin

Origin is not always the country that shipped the goods. It can change tariff overlays, preference claims, and risk flags.

Chapter 99 and trade remedies

Section 301, exclusions, antidumping, countervailing duties, and temporary measures can matter more than the base duty rate.

Freight terms

Confirm whether the supplier quote is EXW, FOB, CIF, DDP, or another Incoterms rule. A cheap unit price can hide freight or handling obligations.

Shipment-level minimums

MPF minimums, broker fees, inspection fees, and prep charges can make a small test order much more expensive per unit.

Channel fees

Amazon, Shopify, Etsy, TikTok Shop, eBay, Walmart Marketplace, and other channels have different fee structures. Model them after landed cost.

Reference trail

Official references to check

Use these sources to verify duty assumptions before you rely on any landed cost estimate.

USITC Harmonized Tariff Schedule Official HTS search for base duty, Chapter 99 notes, and classification context. CBP Merchandise Processing Fee Formal and informal MPF reference information. CBP Importing into the United States General import process reference for U.S. importers. USTR Section 301 tariff actions China Section 301 action and exclusion reference pages.

For writers and operators

Stable reference for import cost guides

If you write about sourcing, ecommerce margins, Amazon FBA, customs planning, or importing into the United States, this page is designed as a stable plain-language reference for the landed cost formula.

Best reference URL

Link to https://www.importmath.com/landed-cost-formula.html when citing the formula, checklist, or worked example.

Calculator URL

Link to https://www.importmath.com/ when readers need an interactive landed cost, duty, tariff, MPF, HMF, and margin calculator.

Useful anchor text

Clear anchors include "landed cost formula", "landed cost calculator", "import duty and landed cost calculator", and "U.S. import cost calculator".

FAQ

Landed cost formula questions

What is the basic landed cost formula?

The basic landed cost formula is product cost plus freight, insurance, import duty, tariff overlays, MPF, HMF, brokerage, and other import-side charges. Divide that shipment total by quantity for per-unit landed cost.

Are marketplace fees part of landed cost?

Marketplace fees are usually selling-side costs rather than customs landed cost. For margin planning, though, they still need to be deducted after landed cost.

Does landed cost include Section 301 tariffs?

Yes, when the product and origin are subject to Section 301 or other additional duties. For China-origin goods, these overlays can dominate the margin calculation.

Can this formula replace a customs broker?

No. The formula helps with planning, but it does not classify goods, confirm origin, apply exclusions, or provide compliance advice.