Landed Cost Calculator UK
Estimate a UK landed cost from goods value, freight, insurance, customs duty, import VAT and clearance charges before you place an order or price imported stock.
Estimate Import Landed Cost
Landed Cost Result
GBP 3,748.80
Estimated landed cost is GBP 3,748.80, or GBP 37.49 per unit before selling overheads.
This is an estimate. Customs value, commodity code, origin, Incoterms, postponed VAT accounting and broker statements can change the final cost.
How The Landed Cost Is Built
customs value = goods value + freight + insurance or packingcustoms duty = customs value x duty rateimport VAT estimate = (customs value + customs duty + taxable fees) x VAT ratelanded cost = customs value + customs duty + import VAT + broker and delivery chargesper-unit landed cost = landed cost / unitsThe calculator follows the usual commercial order of the calculation: value the goods, add duty where it applies, then estimate VAT on the import value including duty. The exact customs valuation can depend on the contract, shipping terms, assists, royalties, related-party pricing and whether charges are included in the invoice. That is why the fields are editable rather than hidden behind a fixed rate.
Import VAT may be recoverable for a VAT-registered business if the import and records qualify, but it still matters for cash flow, postponed VAT accounting and pricing. For a consumer or non-registered buyer, VAT is normally a real cost. The margin shown here treats VAT as part of landed cost because many users want a cash-cost view. If your business reclaims import VAT, run a second case with VAT set to 0 for internal stock margin, while still recording the VAT separately for accounts.
What To Check Before Ordering
Commodity Code
The commodity code controls duty rate, reliefs, licences and restrictions. A similar product can have a different code because of material, function, composition or intended use. Keep the code with the calculation so the duty rate can be checked later.
Origin And Preference
The country of origin is not always the country you buy from. Preferential duty may need proof of origin and the right trade agreement. If proof is missing, a lower duty rate may not apply.
Incoterms And Freight
EXW, FOB, CIF, DAP and DDP can put different charges on buyer or seller. A quote that looks cheap can move costs into freight, clearance or delivery. Match the calculator fields to the term on the supplier quote.
Broker And Courier Fees
Courier disbursement, clearance, storage, examination, port and delivery charges can be small on one shipment and significant on low-margin goods. Ask for a schedule or previous example before fixing a retail price.
Worked UK Import Examples
A small business imports 100 units with a goods value of GBP 2,500, freight of GBP 420 and insurance of GBP 35. Customs value is GBP 2,955. With duty at 4%, duty is GBP 118.20. If VAT is estimated at 20% on customs value plus duty, VAT is GBP 614.64. Add GBP 85 broker and delivery charges and the cash landed cost is GBP 3,772.84, or about GBP 37.73 per unit.
A duty-free shipment is not automatically cost-free. If duty is 0% but freight is high, VAT and broker charges may still make the delivered cost much higher than the supplier unit price. For low-value accessories, per-unit shipping and handling can dominate the margin. For higher-value goods, a small duty percentage can still create a large cash amount.
A DDP quote needs a different reading. If the supplier is genuinely delivering duty paid, some import charges may already be included in the quoted price. Do not add the same duty or VAT twice. Ask for the commercial invoice, shipping term and evidence of who is importer of record before comparing DDP with FOB or EXW.
Pricing And Margin Notes
The gross margin shown in the tool is a simple selling-price comparison. It does not include marketplace commission, card fees, warehousing, fulfilment, returns, warranty replacements, discounting, bad stock, currency movement or overheads. For retail pricing, add those costs after the landed cost. For wholesale pricing, check whether your buyer expects delivery included or charged separately.
Currency timing can also matter. A supplier quote in USD or EUR may change between pro forma invoice, payment, shipment and duty calculation. If exchange rates are important, convert the goods, freight and insurance using the rate required by your customs process, then keep a note of the rate and date. This page lets you enter GBP amounts so the arithmetic stays visible.
Records To Keep With The Estimate
Keep the supplier invoice, freight quote, Incoterm, commodity code, origin evidence, broker statement and VAT evidence with the calculation. If the shipment is repeated later, those records explain why the landed cost changed.
FAQ
Does landed cost include import VAT?
This calculator includes import VAT in the cash landed cost by default. VAT-registered businesses may also want a second internal stock-cost view that excludes recoverable VAT.
Where do I find the customs duty rate?
Use the UK Trade Tariff and the correct commodity code, origin and trade agreement. A rate from a similar item may be wrong.
Should freight be included in customs value?
Often freight and insurance to the UK border are relevant, but the exact treatment depends on the shipping terms and customs valuation rules. Keep the invoice and shipping term with the calculation.
What is the difference between landed cost and selling margin?
Landed cost is the estimated cost to get goods into stock or delivered. Selling margin compares that cost with selling price before other business costs unless you add them separately.
Can this calculator file a customs declaration?
No. It is a planning tool. Declarations, commodity codes, licences, valuation and records must follow official rules or broker advice.
Why is VAT charged after duty?
Import VAT is generally calculated on a value that includes customs duty and some associated costs. This is why VAT often looks higher than goods value times VAT rate alone.
Sources
- HM Revenue and Customs. (n.d.). Trade Tariff: look up commodity codes, duty and VAT rates. GOV.UK. https://www.gov.uk/trade-tariff
- HM Revenue and Customs. (n.d.). Import goods into the UK: step by step. GOV.UK. https://www.gov.uk/import-goods-into-uk
- HM Revenue and Customs. (n.d.). VAT rates on different goods and services. GOV.UK. https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services