# Landed Cost Calculation (International Trade)

*Last updated: 2026-06-25*

> A landed cost calculation is the total cost of importing a product from the point of origin to the buyer's premises, combining the purchase price with all freight charges, import duties, taxes, insurance premiums, and customs clearance fees into a single all-in figure.

A landed cost calculation is the total cost of importing a product from the point of origin to the buyer's premises, combining the purchase price with all freight charges, import duties, taxes, insurance premiums, and customs clearance fees into a single all-in figure. Only this complete cost picture allows traders to set realistic selling prices and assess whether a cross-border deal is genuinely profitable. The landed cost differs from the purchase price alone by the full weight of logistics and compliance costs, which vary considerably depending on the trade lane, applicable customs regime, and destination country. It forms the basis for supplier comparisons, sourcing decisions, and the determination of customs value. For businesses buying from multiple origins, a reliable landed cost calculation is the prerequisite for any meaningful price benchmark.

**Source:** [https://www.investopedia.com/terms/l/landed-cost.asp](https://www.investopedia.com/terms/l/landed-cost.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Landed Cost Calculation (International Trade) |
| Language | EN |
| Word count | 130 |
| Last updated | 2026-06-25 |
| Source | https://www.investopedia.com/terms/l/landed-cost.asp |

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