What is the difference between EXW and FOB here?

EXW (Ex Works) means the price is at the supplier's factory and you pay all transport from there, so add origin haulage to freight. FOB (Free On Board) means the supplier covers cost to the origin port, so your freight starts from the port. Pick the basis that matches your quote.

How is landed cost different from purchase price?

Purchase price is just what you pay the supplier. Landed cost adds freight, insurance, import duty, VAT, and clearance fees to reflect the full cost of the goods sitting in your warehouse, which is the real basis for margin and pricing.

On what value is duty calculated?

Duty is applied to the CIF value, which is goods cost plus insurance plus freight. This calculator builds CIF first and then applies your duty percentage to it, matching how most customs authorities assess duty.

In many VAT regimes registered businesses can reclaim import VAT, so it is a cashflow item rather than a permanent cost. This tool still includes it in the landed total because it must be paid at import; treat it separately if your business reclaims it.

Why does per-unit cost matter for sourcing?

Comparing suppliers on factory price alone is misleading because freight, duty, and tax vary by origin country and product. Per-unit landed cost normalises everything to one comparable number at your door.

Landed Cost Calculator

The price on a supplier quote is rarely the price you actually pay. This calculator assembles the full landed cost — freight, insurance, import duty, VAT, and clearance — from your EXW or FOB base and divides it across the shipment so you can compare suppliers and set margins on a true cost-at-the-door figure.

How it works

The model builds CIF, applies duty and VAT in order, then adds clearance:

cif       = goods cost + insurance + freight
duty      = cif × duty rate
vat       = (cif + duty) × vat rate
total     = cif + duty + vat + clearance fee
per unit  = total / units

Duty and VAT both build on CIF because customs values goods including the cost of getting them to the border, and VAT is charged on the duty-inclusive amount.

Example and tips

A 2,000-unit shipment with 8,000 FOB goods cost, 1,200 freight, 100 insurance, a 4 percent duty rate, 20 percent VAT, and a 120 clearance fee gives a CIF of 9,300, duty of 372, VAT of about 1,934, and a total of about 11,726 — roughly 5.86 per unit versus 4.00 ex-supplier. If your business reclaims import VAT, note it separately so your margin math uses the duty-paid but VAT-exclusive cost.