Tools
Landed cost calculator
Last updated: 16 October 2026
This landed cost calculator works out what imported stock costs you once it's in your warehouse. Enter the supplier's invoice, the exchange rate, freight, insurance, duty and fees. It spreads the extras across each product line by value, weight or quantity, and shows landed cost per unit and the uplift on the invoice price.
Your numbers, not ours. The default example is a pallet of olive oil and balsamic vinegar from a European supplier, so swap in your own shipment and every figure updates as you type.
Product lines
2 of 30One line per product on the supplier's invoice. When you add a line, we copy the duty rate from the line above.
Currency and exchange rate
Use the rate on your bank or forwarder's paperwork.
Shipment costs
Splits freight, insurance and fees by each line's share of the invoice value.
Most food imports are 0%. Shown separately, never added to landed cost.
What your shipment lands at
£6,985.91
Landed cost, total
17.7%
Uplift on invoice value
£0.00
Import VAT, shown separately
Recoverable if you're VAT-registered. Not included in landed cost.
Cost by line
| Line | Share | Goods | Freight | Insurance | Duty | Fees | Landed | Per unit | Uplift |
|---|---|---|---|---|---|---|---|---|---|
| Extra virgin olive oil 500ml | 73.0% | £4,334.40 | £328.70 | £21.91 | £304.53 | £113.22 | £5,102.75 | £4.25 | 17.7% |
| Balsamic vinegar 250ml | 27.0% | £1,599.60 | £121.30 | £8.09 | £112.38 | £41.78 | £1,883.16 | £3.14 | 17.7% |
| Total | 100.0% | £5,934.00 | £450.00 | £30.00 | £416.91 | £155.00 | £6,985.91 | – | 17.7% |
Your £5,934.00 invoice lands at £6,985.91, an uplift of 17.7%. Extra virgin olive oil 500ml costs £4.25 a unit landed, against £3.61 on the invoice.
Want landed costs on every PO? In Pesto you can add haulage and duty to each supplier PO.
Book a demoThese figures are estimates based on your inputs. They're not customs or tax advice. Check duty rates against the UK Global Tariff for your commodity codes, and ask your broker or accountant how to treat import VAT.
What do you need to enter?
Product lines
Supplier currency and exchange rate
Freight
Insurance
Customs and broker fees
Other handling
Allocation method
Import VAT rate
How do we calculate it?
Every number comes from your inputs. No hidden multipliers.
# Per line, in pounds
goods_gbp[i] = qty[i] × unit_price[i] × fx_rate # fx_rate = £ per 1 unit of supplier currency
# Allocation weight per line
basis[i] = goods_gbp[i] if method = value
= qty[i] × kg[i] if method = weight
= qty[i] if method = quantity
share[i] = basis[i] / sum(basis)
# Shipment costs spread by share
freight[i] = freight × share[i]
insurance[i] = insurance × share[i]
broker[i] = broker × share[i]
handling[i] = handling × share[i]
# Duty on goods + freight + insurance for that line
customs_value[i] = goods_gbp[i] + freight[i] + insurance[i]
duty[i] = customs_value[i] × duty_rate[i] / 100
# Landed cost
landed[i] = goods_gbp[i] + freight[i] + insurance[i] + duty[i] + broker[i] + handling[i]
landed_per_unit[i] = landed[i] / qty[i]
uplift_%[i] = (landed[i] - goods_gbp[i]) / goods_gbp[i] × 100
landed_total = sum(landed)
uplift_total = (landed_total - sum(goods_gbp)) / sum(goods_gbp) × 100
# Shown separately, never added to landed cost
import_vat = (sum(customs_value) + sum(duty)) × vat_rate / 100
What does the result look like?
Landed cost, total (£)
Uplift on invoice value (%)
Per line
Import VAT (recoverable, not in landed cost)
Here's the result with the default numbers:
Your £5,934.00 invoice lands at £6,985.91, an uplift of 17.7%. Extra virgin olive oil 500ml costs £4.25 a unit landed, against £3.61 on the invoice.
Want landed costs on every PO? In Pesto you can add haulage and duty to each supplier PO.
These figures are estimates based on your inputs. They're not customs or tax advice. Check duty rates against the UK Global Tariff for your commodity codes, and ask your broker or accountant how to treat import VAT.
Worked example: a pallet of olive oil and balsamic
| Line | Qty | Unit price | Weight per unit | Duty |
|---|---|---|---|---|
| Extra virgin olive oil 500ml | 1,200 | €4.20 | 0.92kg | 6.5% |
| Balsamic vinegar 250ml | 600 | €3.10 | 0.45kg | 6.5% |
Exchange rate €1 = £0.86. Freight £450, insurance £30, broker £95, handling £60. Allocation by value. Import VAT 0%, because both lines are food.
| Olive oil | Balsamic | Total | |
|---|---|---|---|
| Goods | £4,334.40 | £1,599.60 | £5,934.00 |
| Share | 73.0% | 27.0% | 100% |
| Freight | £328.70 | £121.30 | £450.00 |
| Insurance | £21.91 | £8.09 | £30.00 |
| Duty | £304.53 | £112.38 | £416.91 |
| Broker | £69.39 | £25.61 | £95.00 |
| Handling | £43.83 | £16.17 | £60.00 |
| Landed | £5,102.75 | £1,883.16 | £6,985.91 |
| Per unit | £4.25 | £3.14 | |
| Uplift | 17.7% | 17.7% | 17.7% |
Switch to allocation by weight and the olive oil goes to £4.29 and the balsamic to £3.06, because the heavier bottles take more of the freight. The total doesn't move.
(Illustrative numbers. The 6.5% duty rate shows the maths and isn't the tariff for olive oil. Goods that meet a trade agreement's rules of origin can pay 0%.)
Where does this fit?
- What is landed cost?: what to include, why import VAT stays out and how to pick an allocation method.
- Food COGS calculator: put your landed cost per kg into a full cost per unit.
- Demand planning & procurement: supplier POs with additional costs in Pesto.
- All free tools
Frequently asked questions
Why doesn't landed cost include import VAT?
If you're VAT-registered, you can usually account for import VAT on your VAT return and recover it, so it isn't a cost. If you aren't VAT-registered, add it in.
Which exchange rate should I use?
The rate you actually paid the supplier at, or your bank's rate on the payment date. A booked forward rate counts too.
How do I find my duty rate?
Look up the commodity code for each product on the UK Global Tariff, then check whether a trade agreement gives your supplier's country a lower rate. Your broker can confirm it.
Should I allocate freight by value or weight?
Weight matches how hauliers charge, so it's fairer on mixed loads of heavy and light goods. Value is simpler and matches duty and insurance. Pick one and use it every time.
Can I use this for UK suppliers?
Yes. Set the currency to GBP, the exchange rate to 1 and duty to 0%, and add any delivery charge as freight.
Is my data saved?
No. Everything runs in your browser. Your inputs sit in the page link so you can share it, and nothing reaches our servers.
Got your landed cost? Put it to work.
Bring a supplier invoice to a demo and we'll show you how Pesto records it, from the supplier PO to the lot cost behind your margin.
Book a demo