Landed Cost Calculator: Calculate landed cost calculator in Seconds

Calculate true landed cost of imports (product + duty + freight + fees). This tool helps you calculate, understand, and optimize this metric for your business.

By Veira Business Expert, Business Advisor at VeiraPublished June 2024Updated June 2024
Calculator
Depends on the tariff classification of your goods and changes. Confirm the rate for your HS code with KRA.
Result
Landed cost KES 730,000 (KES 1,460 per unit)
Goods valueKES 500,000
Freight and insuranceKES 60,000
Duty at 25%KES 125,000
Clearing and handlingKES 45,000
Total landed costKES 730,000
Cost per unitKES 1,460
Uplift over goods value46.0%

Landed cost is what the stock actually costs you on your shelf, and it is the number to price from. Duty rates depend on the tariff classification of your specific goods and change, so confirm the rate that applies to your HS code with KRA rather than reusing the default here.

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What landed cost actually includes

Landed cost is what imported stock costs you standing on your own shelf: the goods, the freight and insurance, the duty, and the clearing, handling and inland transport. Pricing from the invoice value alone understates the real cost, sometimes by a third or more.

Duty rates depend on the tariff classification of your specific goods and they change, so confirm the rate for your HS code with KRA rather than reusing a figure from an article. This calculator takes the rate as an input for that reason.

Why per-unit landed cost matters

Margin is only meaningful against landed cost. A shipment that looks profitable against the invoice price can be marginal once freight and clearing are spread across the units, particularly on low-value, high-volume goods where shipping is a large share of the total.

Work out the per-unit figure before you set a shelf price, and recalculate when freight rates or the exchange rate move rather than assuming last shipment's number still holds.

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Worked examples

KES 500,000 of goods, 500 units
  • Freight and insurance KES 60,000
  • Duty at 25% on goods: KES 125,000
  • Clearing and transport KES 45,000
  • Landed cost KES 730,000, or KES 1,460 per unit
  • A 46% uplift on the invoice value

Frequently asked questions

What is landed cost?
What imported stock costs standing on your own shelf: goods value, freight and insurance, duty, and clearing, handling and inland transport. It is the figure to price from, not the supplier invoice.
What import duty rate applies to my goods?
It depends on the tariff classification of the specific goods and it changes. Confirm the rate for your HS code with KRA rather than reusing a figure from an article, including the default in this calculator.
Should VAT be included in landed cost?
Where you can recover input VAT it is not a cost to the business, so it is usually excluded from the pricing figure and handled separately. Confirm your own VAT position with your accountant or KRA.
Why is my per-unit cost so much higher than the invoice price?
Because freight, duty and clearing are spread across the units. On low-value, high-volume goods the uplift over invoice value can exceed a third, which is exactly why pricing from the invoice alone loses money.
How often should I recalculate?
Whenever freight rates, the exchange rate or the duty position move. Reusing last shipment's per-unit figure is a common and expensive habit.

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