Landed cost per unit calculator
Allocate freight and other shipment costs across inventory.
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How it works
Estimate the landed cost of a shipment and each product by spreading freight, insurance, duties, and other entered fees across your CSV product lines. Choose value allocation or quantity allocation, compare costs per unit, and export the breakdown. Enter every amount in the same currency.
A few things to know
This is an allocation estimate using entered costs, not a customs valuation or tax calculation. It does not determine HS codes, duty rates, tax recoverability, or exchange rates. Weight, volume, and product-specific fees can require different allocation rules; all extras here use one selected basis. Add any relevant omitted costs yourself. A zero-value shipment with positive extras requires quantity allocation. Up to 1,000 product rows are supported. Source: https://www.shopify.com/blog/landed-cost
Results use your inputs. Keep all money amounts in the same currency.
When to use this tool
A supplier’s unit price is only part of the cost of bringing stock into your business. Freight, insurance, duties and handling can change the amount each product needs to recover when sold. This landed cost calculator totals the shipment costs you supply and allocates the extras across a product CSV by goods value or unit quantity. The downloadable breakdown helps compare product costs, while keeping the allocation method explicit. It does not look up customs rates or decide the correct accounting treatment for your shipment.
- Allocate known freight and shipment fees across an incoming purchase order.
- Compare value-based and quantity-based allocations before using landed unit costs for pricing.
- Export a transparent cost breakdown for an inventory spreadsheet or supplier-cost review.
How to use landed cost per unit calculator
Enter the shipment lines
In Shipment products (CSV), use name,quantity,unit_cost. Quantity is a positive whole number and unit_cost is the supplier cost of one unit.
Add known shipment extras
Enter Total shipment freight, Total shipment insurance, Total duty amount and Other shipment fees in the same currency as the goods.
Choose the allocation basis
Use Allocate shipment extras by to select Product value or Unit quantity. Read each product’s landed unit cost and download the breakdown if needed.
Equal goods values receive equal extras
Inputs
T-shirt: 100 units at 5. Canvas bag: 50 units at 10. Freight 200; insurance 20; duty 60; other fees 20; allocation by product value.
Result
Goods cost is 1,000.00 and extras are 300.00, producing a landed shipment cost of 1,300.00. Each line receives 150.00 of extras. T-shirt landed cost is 6.5000 per unit; bag cost is 13.0000.
What it means
Both lines have goods value 500, so value allocation assigns equal shares. Choosing quantity instead assigns 200 of extras to the 100 shirts and 100 to the 50 bags, yielding unit costs of 7 and 12.
Common mistakes to avoid
Entering a duty percentage
Total duty amount requires a known monetary amount. Calculate or obtain applicable duties separately; this tool does not determine them.
Mixing currencies
Convert supplier and shipment amounts to one chosen currency before entry. The tool performs no exchange conversion.
Using the blended average for every product
The shipment average combines unlike units. Product rows, not the blended average, are the useful starting point for individual product pricing.
Frequently asked questions
Definitions, edge cases, and practical next steps for this tool. Search all tool FAQs ↗
What is included in landed cost here?
The model adds supplier goods cost, freight, insurance, the duty amount and other fees you enter. It cannot detect omitted expenses. Add relevant costs consistently and avoid including the same freight or handling charge both in unit cost and extras.
How does value allocation work?
Each product line receives the share of extras matching its goods value divided by total goods value. A line representing 30% of supplier goods value receives 30% of every entered extra. More expensive goods therefore receive more cost per unit.
How does quantity allocation differ?
It assigns the same extra cost to every unit regardless of price. Line share equals its unit count divided by total units. This may suit similar items, but physical size, weight or special handling can make either available basis inappropriate.
Can different fees use different allocation methods?
No. The chosen method applies to freight, insurance, duty and other fees together. If your shipment needs weight-based freight and product-specific duties, allocate those externally rather than assuming this simplified breakdown represents the actual cost pattern.
Does the calculator determine customs valuation or tax?
No. It accepts amounts already obtained and distributes them. It does not choose tariff classifications, determine customs value, look up rates or judge tax recoverability. Use the appropriate primary customs guidance for those separate decisions.
Why do displayed product totals differ slightly from the shipment total?
Line amounts display two decimals and per-unit costs four decimals. The calculation retains more precision internally, so independently adding rounded display rows can produce a small difference. Keep that rounding distinction in mind when importing the export.
Can I enter samples with zero supplier cost?
Yes, with a positive whole-number quantity. If the whole shipment has zero goods value but positive extras, value allocation has no denominator; choose quantity. In a mixed shipment, a zero-value line receives no extras under value allocation.
What format should my CSV use?
Use the exact three-column header and plain numeric quantities and costs without currency symbols or thousands separators. Quote names containing commas. The tool supports up to 1,000 product rows and rejects fractional quantities, negative costs and malformed rows.
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Sources and method
Use the references below to check definitions and platform guidance. The model’s scope and limits are explained above. Read our editorial standards.