Landed Cost Calculator

Formula

The formula to calculate the Landed Cost is:

\[ LC = PC + S + CC + R + O \]

Where:

$LC$ is the Landed Cost (\$)
$PC$ is the Product Cost (\$)
$S$ is the Shipping Cost (\$)
$CC$ is the Customs Cost (\$)
$R$ is the Risk Cost (\$)
$O$ is the Overhead Cost (\$)

What is Landed Cost?

The landed cost is the total price of a product once it has arrived at a buyer's doorstep. This includes the original product cost, shipping fees, customs duties, insurance, and any other costs incurred along the way. Calculating the landed cost is crucial for businesses to understand the full expense of importing goods and to set appropriate sale prices that cover all incurred costs.

Example Calculation

Let's assume the following values:

Product Cost (PC) = $100
Shipping Cost (S) = $20
Customs Cost (CC) = $15
Risk Cost (R) = $5
Overhead Cost (O) = $10

Using the formula:

\[ LC = 100 + 20 + 15 + 5 + 10 = 150 \]

The Landed Cost (LC) is $150.