GlossaryEN1 min readUpdated: Jun 26, 2026

Total Landed Cost Calculation

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Last updated: 26 June 2026Published: 19 June 2025

Source: https://www.investopedia.com/terms/l/landed-cost.asp

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Definition & Explanation

Total Landed Cost Calculation is the method used to determine the true cost of imported goods at the point of destination, covering every charge incurred along the way: purchase price, ocean or air freight, insurance, import duties, value-added tax, and ancillary fees such as customs brokerage, port handling, and final-mile delivery. Procurement teams and freight forwarders rely on this figure to compare suppliers and sourcing routes on an apples-to-apples basis. A low unit price from a distant origin can lose its advantage quickly once long transit times, tariff rates, and regulatory compliance costs are included. Where applicable, the calculation also captures export levies at origin and currency hedging costs. Unlike a simple price quotation, landed cost analysis reflects the full financial reality of a sourcing decision.

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Transit index

Check transit time: city-to-city index

P50/P80 transit times for sea, air and road — sourced and confidence-rated, not a carrier quote.

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Total Landed Cost Calculation

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