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What each unit really cost you, landed — landed cost calculator
Add freight, customs duty, insurance, the clearing agent and inland transport to the supplier invoice. See the true landed cost, the cost per unit and how much the charges add.
Free · no sign-up · the sums run in your browser. The boxes open on a worked example: put in your own bills.
How the sum works
Four lines, the same in any ERP. Pick a step to see the line it adds.
The goods' price, as the supplier billed it, and the quantity you received.
From the purchase invoice
Supplier invoice
Supplier invoiceyour figure
Quantity receivedunits
Freight for the shipment, the clearing agent's (CHA) fee and inland transport, from each bill.
From the freight, CHA and transport bills
Charges
Freightper shipment
CHA / clearingper shipment
Inland transportper shipment
Customs duty and insurance, each as a share of the invoice. Your bill of entry and your policy give the figures.
From the bill of entry and the policy
Duty and insurance
Customs dutyinvoice × duty rate
Insuranceinvoice × premium rate
Invoice plus every charge is the true landed cost. Divide by the quantity for the cost per unit; the charges over the invoice say how much they add.
The figure that belongs in item cost
Landed cost
Invoice + chargestrue landed cost
÷ quantityper unit
Charges ÷ invoicewhat they add
What this calculator answers
The cost of goods once they are in your store, not the supplier's price.
The sum is the same in any ERP: ERPNext, Tally, SAP Business One, Zoho or Odoo. What differs is where you post it. Booked as plain expenses, these charges never reach item cost, so margins look better than they are. The guide shows how ERPNext posts them with a Landed Cost Voucher.
What it rests on
- The supplier invoice and your charge billsYour own figures. The boxes start with a worked example; replace every one.
- Duty and insurance as a share of the invoiceYour bill of entry and your policy give the rates; they differ by goods and route.
- How the charges spread across itemsBy quantity or by value, per charge type. The guide's picker says which and why.
What this cannot tell you
Four things to know before you post the figure, and who made it.
- How customs values the goodsThe calculator works duty on the invoice. Customs works it on the assessable value, so use the duty on your bill of entry: change the rate until the duty matches it.
- Tax you recover as creditTax you claim back as input credit is not part of the cost of the goods. Ask your CA which of yours you recover, and leave it out.
- How to spread charges across itemsOne total per shipment. Splitting it by quantity or by value, item by item, is the guide's distribution picker.
- Where your ERP posts itThe sum is the same everywhere; the posting is not. The guide shows ERPNext's Landed Cost Voucher; for another system, talk to us.
Who made this
MithTech, from the guide this calculator comes from, which walks through posting landed cost in ERPNext against a purchase receipt. It reads nothing from your books.
Guide updated 12 October 2026.
When the answer is a project
When landed cost has to reach item cost every time, without a spreadsheet, these are the next steps.
See goods arrive and get checked
A delivery is received, inspected and stored by batch, and the order already knows.
ERPNext implementation
Buying, imports and stock set up so landed cost posts with the receipt.
Landed Cost Voucher in ERPNext
The guide this calculator comes from, with the posting steps and the distribution picker.
Questions about landed cost
The one most people ask is answered first. Type to find the rest.
What happens if we just expense freight and duty?
Inventory sits on the balance sheet at the supplier invoice value, so it is understated. Freight and duty hit the P&L in the period you paid them, not the period the goods sell, and if they are booked below gross margin, COGS is understated and gross margin per item looks better than it is. Period-to-period margins stop being comparable.
In ERPNext
It adds extra purchase costs (freight, customs duty, insurance and clearing charges) to the valuation of received items so inventory is valued at landed cost. It is created against a Purchase Receipt and distributes the charges across items, which makes COGS and margins accurate for importers and distributors.
Create a Landed Cost Voucher, fetch the Purchase Receipt for the shipment, and enter each charge in the Taxes & Charges table with its expense account. Choose Distribute Charges Based On (Amount / Qty / Manual) and submit. ERPNext raises each item's valuation rate by its share, so the cost is embedded in stock rather than booked as a plain expense.
Match the method to how the charge was incurred: Amount for value-based charges (customs BCD, insurance, CHA, bank), Qty for per-unit or per-weight charges (ocean freight, inland transport), and Distribute Manually only when neither default is fair. The guide's picker names the ERPNext value for each case.
Other systems
Yes. Landed cost is the supplier invoice plus what it took to get the goods into your store, in any system. What differs is how each ERP posts it into item cost. The guide shows ERPNext's way; for the system you run, tell us and we will say how it is done there.