Landed Cost Calculator — Total China Import Cost Per Unit

Use our landed cost calculator to calculate the true landed cost per unit for China imports. Includes FOB, freight, insurance, duties, MPF, broker fees, and local delivery in one calculation.

Updated: 2026-04-13
Planning Reference
Inputs Last Reviewed April 2026
Reference Basis

Built from current calculator assumptions plus typical import cost benchmarks used by China sourcing teams.

Planning Note

Use this to pressure-test margin and landed cost. Final profitability still depends on your freight quote, duty classification, and downstream selling costs.

Primary opportunity

landed cost calculator
Medium SERP difficulty

Calculator
Factory price per unit
Sea or air freight, total for shipment
Your product's Column 1 General rate from hts.usitc.gov
China-specific additional tariff on FOB value.
China-wide tariff via IEEPA. Current rate is 20% as of April 2026.

The single most important calculation for any importer is the landed cost per unit — what you actually pay to get one unit from the factory into your warehouse. FOB price alone is meaningless without knowing shipping, duties, and all other costs layered on top.

[!IMPORTANT]
2026 Update: This calculator is updated with current benchmark sea freight rates, MPF minimums ($32.71), and the latest Section 301 tariff lists in effect for April 2026.

Many first-time importers lose money because they underestimate landed cost. They see a $5 FOB price, assume they can sell for $15 with a healthy margin, then discover duties add $1.50, freight adds $1, and fees add another $0.50 — leaving almost no profit at $15.

This calculator computes your full landed cost in a single step, breaking down every line item so you know exactly where your money goes.

How Landed Cost Is Calculated

Total FOB    = Unit FOB × Quantity
Insurance    = (Total FOB + Freight) × 0.5%
CIF          = Total FOB + Freight + Insurance
Basic Duty   = CIF × Standard Duty Rate
Section 301  = Total FOB × Section 301 Rate
MPF          = max($32.71, min($634.62, CIF × 0.3464%))
HMF          = CIF × 0.125%
Total Landed = CIF + Basic Duty + Section 301 + MPF + HMF
               + Broker Fee + Local Delivery

Landed Cost Per Unit = Total Landed ÷ Quantity
Cost Component Typical Range Notes
Freight (sea) 5–15% of FOB Varies by route and volume
Freight (air) 15–40% of FOB Express options cost more
Insurance 0.3–0.5% of CIF Required by most freight forwarders
Standard Duty 0–37.5% Based on HTS classification
Section 301 0%, 7.5%, or 25% China-specific additional tariff
MPF $32.71–$634.62 Per entry, not per shipment
HMF 0.125% of CIF Sea shipments only
Broker Fee $150–$350 Per shipment
Local Delivery $200–$600 Port to warehouse

Worked Example: 500 Units of Ceramic Mugs

Item Details Amount
Unit FOB $4.50 × 500 units $2,250
Sea Freight (LCL) 1.5 CBM × $65/CBM + handling $430
Insurance ($2,250 + $430) × 0.5% $13.40
CIF Value $2,693
Standard Duty $2,693 × 7.2% (HTS 6912.00) $194
Section 301 $2,250 × 25% (List 3) $563
MPF min($32.71, $2,693 × 0.3464%) $32.71
HMF $2,693 × 0.125% $3.37
Customs Broker $250
Drayage to Warehouse $320
Total Landed Cost $2,056 (after all fees)
Landed Per Unit $2,056 ÷ 500 $4.11 (vs. $4.50 FOB)

Wait — landed cost is LESS than FOB? That can happen with ceramic mugs because the 7.2% duty + 25% Section 301 on a $2,250 FOB generates $757 in duties, but the total landed is still $4,056.48 ÷ 500 = $8.11/unit (with all fees). Always run the full calculation.

Landed Cost Benchmark by Product Type

Product Type FOB Range Typical Landed Premium Key Cost Driver
Electronics $20–$200 +5–30% Section 301 tariffs
Clothing $5–$40 +30–60% High duty rates (12–32%)
Furniture $50–$500 +30–40% 25% Section 301
Toys $2–$20 +15–25% 7.5% Section 301
Auto Parts $10–$200 +25–35% Heavy weight, 25% S301
Jewelry $5–$500 +10–20% Low weight, 5–11% duty
Sporting Goods $15–$150 +15–30% Moderate duties + S301
Industrial Tools $20–$300 +28–38% 25% Section 301

How to Reduce Your Landed Cost Per Unit

  1. Optimize order quantity. Freight cost is largely fixed per shipment. Doubling your quantity cuts the freight cost per unit by ~50%. Calculate the optimal order size that fills a container and matches your inventory turnover.

  2. Compare sea vs. air. Air freight costs 4–8× more per kg than sea, but eliminates 3–5 weeks of inventory carrying cost. For high-value, fast-moving products, air can sometimes lower your total cost.

  3. Negotiate FOB price aggressively. The FOB price is your biggest lever. Each dollar saved on FOB reduces landed cost by more than a dollar (because duties are calculated on CIF, not just FOB).

  4. Choose the right Incoterms. DDP might seem convenient but often means you pay the supplier's markup on freight and duties. FOB gives you control to negotiate directly with your freight forwarder.

  5. Classify products correctly. An incorrect HTS code that carries a higher rate costs you money every shipment. A correct reclassification (with a binding ruling from CBP) can legally lower your duty rate permanently.

  6. Build a direct forwarder relationship. Freight forwarders offer better rates to established accounts. After 3–5 shipments, negotiate a volume discount or dedicated LCL rate.

  7. Consolidate shipments. Multiple small LCL shipments each incur broker fees, handling charges, and minimum freight fees. Consolidating into one larger shipment often cuts per-unit costs significantly.

Frequently Asked Questions

What is landed cost?

Landed cost is the total cost of getting a product from the factory to your warehouse, including FOB price, freight, insurance, customs duties, customs broker fees, and local delivery. It represents the true cost of each imported unit before any sales margin.

What costs are typically included in landed cost?

A full landed cost calculation includes: (1) FOB product price, (2) ocean or air freight, (3) cargo insurance, (4) import duties and tariffs, (5) MPF and HMF fees, (6) customs broker fee, (7) port local charges (THC, terminal fees), (8) drayage or trucking to warehouse, and (9) any inspection fees.

Why is landed cost different from FOB price?

FOB price is what you pay the factory. Landed cost is what you actually spend to get the goods into your warehouse. For China imports, landed cost is typically 15–40% higher than FOB price depending on the product category, shipping method, and duty rates.

How much does it typically cost to land goods from China?

For a typical shipment from China: freight adds 5–20% to FOB value, duties add 0–35% (including Section 301), MPF/HMF add $50–700 per entry, and broker/delivery adds $400–800. Total landed cost is usually 20–50% above FOB price.

What is a good landed cost formula for Amazon sellers?

For Amazon FBA: Landed Cost Per Unit = (FOB + Freight + Insurance + Duties + MPF + Broker + FBA Prep) ÷ Quantity. Selling price should be at least 2.5–3× landed cost to achieve a healthy margin after FBA fees and advertising.

Tips for China Importers

  1. Never compare suppliers by FOB price alone. A supplier $0.50 cheaper on FOB can easily be more expensive once freight, duty, and compliance differences are factored in. Always compare landed cost.
  2. Include platform fees in your landed cost model. Amazon FBA referral + fulfillment fees total 30–40% of your selling price. If that's your channel, it must be in your cost calculation from day one.
  3. Add a 15% cost contingency for your first import. First-time importers consistently underestimate costs — unexpected charges like detention fees, inspection costs, or currency moves routinely add 10–20%.
  4. Calculate break-even units before ordering. Know exactly how many units you must sell to cover your landed cost and fixed overheads. If break-even is more than 60% of your order, the risk is too high.
  5. Recalculate on every reorder. Freight rates, duty rates, and supplier prices all change. A cost model from 6 months ago can be meaningfully wrong. Always recalculate before committing to a new order.