Landed Cost  Landed Cost Formula - Calculators
                     How to Calculate 
Landed Cost
LANDED COST CALCULATOR + FORMULA 
In small and medium businesses 
there are many small factors that 
influence healthy profits
What Exactly is 
Landed cost?
Landed cost is the total 
expenditure involved in buying a 
product and shipping charges for 
importing it to your warehouse
Product cost
+ Shipping: Costs associated with 
crating, packing, handling, and freight
+ Customs: Duties, taxes, tariffs, VAT, 
brokers fees, harbor fees
+ Risk: Insurance, compliance, quality, 
safety stock cost
+ Overhead: Purchasing staff, due 
diligence cost, travel, exchange rates
= Landed cost
Why Should I Care 
About Landed Costs?
 Gives you the insight on the actual 
amount paid to get your hands on 
the product
 Extremely necessary to precisely 
disintegrate the cost price as it will 
help the seller to take better 
decisions
 Without any idea of landed cost, the 
store owner will have no choice but 
to believe the data in the 
spreadsheets
Importance of 
Landed Cost
 Ensure estimated profit on the 
product by marking the price such 
that you can sell it with attractive 
discounts
 Easier to figure out the steps at 
which you can cut yourself some 
slack. This way savings can be done 
where possible
 Precise data on landed cost can 
make you far-sighted, and therefore 
you take decisions
Calculation of Total 
Landed Cost
 It starts with determining the 
essential components that make up 
the Total Landed Cost.
 It includes cost price of the product 
paid to the supplier, freight costs.
 If the shipment is imported overseas 
then custom duties and currency 
factor.
 Other optional costs are insurance, 
storage costs etc. which depend 
upon the nature of freight
MORE INFORMATION
https://emergeapp.net/sales/l
anded-cost/