Free Landed Cost Calculator
Calculate the true cost of your product — including tariffs, import duties, shipping, and fees — so you can price with confidence and protect your profit.
Importing materials for your products? Craftybase automatically tracks your material costs, tariffs, and true profit on every sale.
Try free for 14 daysWhat Is Landed Cost? (Quick Answer)
Landed cost is the total cost of getting a product or material to your door — not just the purchase price, but also tariffs, import duties, shipping, insurance, and brokerage fees. For makers who source materials internationally, knowing your true landed cost is essential for setting prices that actually cover your expenses. The formula is: Landed Cost = Material Cost + Tariffs + Shipping + Brokerage Fees.
How to Use This Landed Cost Calculator
This calculator works out the true cost of your product — not just what you paid for materials, but every charge involved in getting those materials to your workshop and turning them into something you can sell. Here's how to fill in each section.
Base Material Cost
Enter the cost of raw materials per unit of finished product. If you buy materials in bulk (e.g. a 10lb bag of wax for candles), divide the total cost by the number of units it produces. For example, if a $50 bag of soy wax makes 20 candles, your base material cost is $2.50 per candle.
Tired of manually calculating material costs per unit?Craftybase tracks your material purchases, automatically calculates the per-product cost based on current prices, and updates in real time as supplier costs change.
Try free for 14 days →Tariff / Import Duty
If you import materials from overseas, you'll likely pay a tariff or import duty. Enter either the percentage or the dollar amount — the other field auto-calculates. Not sure what your tariff rate is? Look up your product's HS (Harmonized System) code on the US International Trade Commission site. Common tariff rates for craft materials range from 0% to 25%, depending on the material type and country of origin.
Keep in mind that tariff rates can change — sometimes significantly. With recent trade policy changes, many materials sourced from certain countries have seen duty rates increase. Always check the current rate before finalising your product costs.
Shipping, Insurance & Brokerage Fees
Shipping is the cost to get your materials from the supplier to you. For international orders, this often includes insurance and customs brokerage fees. Carriers like FedEx, UPS, and DHL charge brokerage fees (typically $5–$15 per shipment) to process customs clearance on your behalf. Divide these per-shipment costs by the number of units the shipment produces.
Labor, Overhead & Markup
Enter your production time in minutes and your hourly rate. Add your per-unit overhead (monthly business costs divided by monthly output). The markup multiplier is how many times your total cost you want to charge — 2.5x is a common starting point for handmade goods, meaning a product that costs $20 to make would sell for $50.
For a deeper dive into markups and margins, check out our guide on how much you should mark up your products.
The Landed Cost Formula Explained
The formula this calculator uses breaks your total cost into two parts:
Landed Cost = Material Cost + Tariffs + Shipping + Brokerage
True Total Cost = Landed Cost + Labor + Overhead
Target Price = True Total Cost × Markup Multiplier
Let's walk through an example. You're a candle maker importing fragrance oils:
- Material cost per candle: $3.50 (wax, wick, jar, fragrance)
- Fragrance oil tariff: 5% on the fragrance portion ($0.80 worth) = $0.04
- Shipping per unit:$0.50
- Brokerage per unit:$0.10
- Landed cost: $3.50 + $0.04 + $0.50 + $0.10 = $4.14
- Labor: 15 minutes at $20/hr = $5.00
- Overhead:$0.75
- True total cost: $4.14 + $5.00 + $0.75 = $9.89
- Target price at 2.5x: $9.89 × 2.5 = $24.73
Without accounting for the tariff, shipping, and brokerage, you'd calculate your cost as $8.25 and price at $20.63 — leaving $1.64 per candle on the table. Multiply that by hundreds of candles and it adds up fast.
Common Landed Cost Mistakes Makers Make
Ignoring import duties entirely
Many makers source materials internationally without realising they're paying tariffs. That "free shipping" supplier on AliExpress? The tariff still applies when the package clears customs. Your carrier often pays it on your behalf and adds it to your invoice — check your shipping invoices carefully.
Not updating costs when tariff rates change
Tariff rates aren't static. Trade policy shifts, new tariff schedules, and changing HS code classifications can all affect what you pay. If you priced your products based on last year's tariff rate and it's gone up, your margin has silently shrunk. Review your landed costs quarterly, at minimum.
Forgetting per-shipment costs
Brokerage fees, insurance, and handling charges are easy to overlook because they appear on the shipping invoice, not the supplier invoice. A $12 brokerage fee on a small order of essential oils might add $0.50–$1.00 per unit. It matters.
Using purchase price instead of landed cost for pricing
Your material "cost" is not what you paid the supplier. It's what you paid the supplier, plus the tariff, plus the shipping, plus the brokerage. If you're pricing based on the supplier invoice alone, you're systematically under-pricing every product that uses imported materials.
When You Outgrow This Calculator
This calculator is great for working out the landed cost of a single product. But once you're juggling dozens of materials from multiple suppliers — each with different shipping costs, tariff rates, and fluctuating prices — manual calculations become a time sink.
That's where Craftybase takes over. It automatically tracks your material purchase costs, calculates the true cost of every product in your catalog, and updates your COGS in real time as supplier prices change. You stop guessing and start knowing exactly what each product costs to make.
You can also compare your costs across suppliers, see which products are most and least profitable, and get alerts when material cost increases push a product below your target margin.
See how Craftybase tracks your costs →Who Should Use This Landed Cost Calculator?
This tool is built for any maker or small business that sources materials — whether locally or internationally — and needs to know the true cost of their products. It's especially useful for:
- Candle makers and soap makers importing fragrance oils, essential oils, or specialty waxes from overseas suppliers.
- Jewelry makers sourcing beads, findings, gemstones, or precious metals from international wholesalers.
- Textile artists and sewers buying specialty fabrics, trims, or notions from abroad.
- Cosmetics and skincare makers importing raw ingredients, botanical extracts, or packaging.
- Any Etsy or Shopify seller who buys materials internationally and wants to make sure their prices actually cover the full cost of getting those materials to their workshop.
Even if you source domestically, this calculator helps you account for shipping and overhead in your product costs — just leave the tariff fields at zero.