Landed cost calculator

The supplier’s price is not what a unit costs you. Freight, import duty, clearance and the bag it ships in all land on the same unit. Put in one order and see the real figure, with every part of the working, then the price that keeps the margin you want.

One production order Example

Units in the order

Supplier price, per unit

Shipping and freight, whole order

Import duty rate

Clearance and other costs, whole order

Packaging and labels, per unit

Landed cost, per unit

£16.51

Your selling price

The margin you want

Up to 95%.

Margin at your price 63.3%
Price for a 60% margin £41.28

Duty is worked on the goods plus freight, the customs value for a UK import. Look up your rate by commodity code on the UK Trade Tariff. Import VAT is left out, because a VAT-registered brand usually reclaims it; if you are not registered, add it to clearance.

What goes into landed cost

The supplier price per unit, then everything it takes to get that unit to you, shared across the order: shipping and freight, import duty, clearance and broker fees, and the packaging, swing tags and labels each unit leaves in.

Duty on an import into the UK is charged on the customs value: the goods plus the cost of getting them here. The rate depends on what the item is and where it was made. Find yours by commodity code on the UK Trade Tariff; many cotton garments sit around 12%, but check rather than assume. Goods that qualify under a trade agreement can come in at 0%.

Import VAT is left out on purpose. A VAT-registered brand usually reclaims it, so it is cash flow rather than cost. If you are not registered, add it to the clearance line, because for you it is a cost.

Then price on top of it

Margin is profit as a share of the price. To keep 60% on a unit that lands at £16.51, the price has to be £16.51 ÷ (1 − 0.60), so £41.28. Cost-plus on the supplier price alone would have put you at £30 and a 45% margin you never meant to give away. More in how to price a product and the gross margin definition.

Next steps

Do the maths

ToolProfit margin calculatorMargin, markup and profit on a sale ToolMarkup calculatorCost plus markup, and the margin it gives ToolBreak-even calculatorUnits you must sell to cover costs

Read the guide

GuideHow to price a product (without leaving money on the table)A clear method for pricing physical products, covering cost, margin and market, so you’re profitable and competitive, not just cheap.GuideHow to start a clothing brand (the honest guide)What it actually takes to start a clothing brand, from idea and samples to inventory, pricing and your first drop, without the guru fluff.GuideWhat is a tech pack (and when you actually need one)?A plain-English guide to tech packs for clothing and product brands: what goes in one, why manufacturers need it, and when to make yours.

What the words mean

TermLanded costThe true, all-in cost of a product once it reaches you.TermCOGS (Cost of Goods Sold)The direct cost of the products you sold in a period.TermMOQ (Minimum Order Quantity)The smallest quantity a supplier will produce or sell in one order.TermWholesaleSelling your products in bulk to retailers at a lower per-unit price.