Landed cost calculator for a supplier price change
The list price is not what an item costs you once freight, duty and fees are added. Enter one order line and both unit prices to see the landed cost per unit before and after the change.
The method
- Goods value = unit price x units.
- Duty = goods value x duty rate. This calculator applies duty to the goods value only. If your customs value includes freight, add the freight to the base before applying the rate.
- Total = goods + duty + freight + other fees for the order.
- Landed cost per unit = total / units. Freight and fees here are spread evenly per unit; if one order mixes items of very different size or value, split them by weight or value instead.
In a spreadsheet, with price in B2, units C2, freight D2, duty rate E2 and fees F2:
=(B2*C2*(1+E2)+D2+F2)/C2Worked example
500 units, $350 freight, 4% duty and $75 of fees. The supplier moves the unit price from $12.00 to $12.90, a +7.5% list increase.
| Before | After | |
|---|---|---|
| Goods | $6,000.00 | $6,450.00 |
| Duty at 4% of goods | $240.00 | $258.00 |
| Freight | $350.00 | $350.00 |
| Other fees | $75.00 | $75.00 |
| Total | $6,665.00 | $7,133.00 |
| Landed cost per unit | $13.33 | $14.27 |
Landed cost per unit rises $0.94, which is 7.0%. That is less than the +7.5% on the list because freight and fees did not move, and more in money than the $0.90 list change because duty is charged on the higher price.
Comparing a whole new list against the old one? The free price list compare tool finds every line that changed first.
Pricecheck takes the supplier's email as it arrives, PDF included, compares it with the last version and sends back only the lines that moved. $49/mo, first month free for early signups. No payment now.