Tool

Landed cost calculator for apparel imports

The factory price is not what a garment costs you. Add freight, duty and customs fees, spread them across the shipment, and the real number is often a quarter or more higher. Enter a shipment below to see your true unit cost and margin.

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For planning purposes only. Duty rates depend on the exact tariff classification and country of origin, and can change. Confirm with your customs broker before pricing.

How landed cost is calculated

Landed cost is the factory price plus everything it took to get the goods into your warehouse, divided across the units in the shipment.

The calculator works it out in four parts: the factory cost per unit, duty on that cost, freight per unit, and other fees per unit. Add them together and you have the true cost of one garment. Compare that to your wholesale and retail prices and you have the margin you are actually earning, rather than the one the factory price suggests.

Why duty is calculated on the factory cost here

In the United States, duty is generally charged on the transaction value of the goods, which usually excludes international freight and insurance. Many other markets, including the European Union, charge duty on a value that includes freight and insurance. If you import into the EU, your real duty will be higher than this calculator shows for the same rate.

What to enter as the duty rate

Use the full rate that actually applies to the shipment: the base rate for the product's tariff classification plus any additional tariffs in force for that country of origin. Apparel carries some of the highest base duty rates in the tariff schedule, and the classification decides which one applies. A knit and a woven version of the same shirt can land in different classifications with different rates.

What belongs in other fees

Why this number matters more than it looks

Most brands set wholesale prices from the factory cost plus a target markup. If landed cost is not carried against the style in your system, every margin report you run is overstated, and the styles that look most profitable on paper are sometimes the ones with the heaviest freight or duty.

The fix is not a better spreadsheet. It is landed cost held against each style in the system that runs your orders and inventory, so margin by style and by channel is real.

Want landed cost built into your reporting?

We set up landed cost by style and channel, review duty classifications on your highest-volume styles, and model the impact of a tariff change before it lands. If your setup already handles it, we will tell you that.

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