# What is landed cost?

> Landed cost is the total cost of getting goods to the buyer: price, shipping, insurance, duty, import tax and fees. The formula, an example, and a free calculator.

Source: https://border.bot/glossary/landed-cost
Last updated: 2026-10-27

Landed cost is the total cost of getting a product to the buyer’s door: the price of the goods, shipping and insurance, plus the duty, import tax and fees charged at the border. It is what a cross-border order really costs, and what the buyer pays at checkout or on delivery.

## Calculate the landed cost of a parcel, line by line, on live rates

Run it at [the landed cost calculator](https://border.bot/tools/landed-cost-calculator).

## The formula

Landed cost = goods + shipping + insurance + duty + import tax + fees.

Duty is the customs value times the duty rate of the product’s code for its origin, plus any additional duties. Import tax (VAT, GST) is usually charged on the customs value plus the duty. Fees include customs processing fees and, where the carrier charges them, clearance fees.

## Why it matters for an online store

If the buyer pays the duty and tax on delivery (DAP), an unexpected bill leads to refused parcels and returns. Showing the landed cost at checkout and collecting it there (DDP) avoids that, but only works if the calculation is right for each product, origin and destination.

## Frequently asked questions

### Is shipping part of landed cost?

Yes. Shipping and insurance are part of the total, and in countries that value imports on a CIF basis (the EU and the UK) they are also added to the value duty is charged on.

### What is the difference between landed cost and duty?

Duty is one part of the landed cost: the tax on the goods set by their tariff code. Landed cost adds the goods, shipping, import tax and fees.

## Related

- [Duty](https://border.bot/glossary/duty): A tax on imported goods, set by the tariff line for the product’s code and country of origin.
- [Customs value](https://border.bot/glossary): The value duty is calculated on, usually the price paid for the goods (the transaction value).
- [DDP](https://border.bot/glossary): An Incoterms rule: the seller handles import clearance and pays the import duty and taxes, so the customer pays nothing on delivery.
- [DAP](https://border.bot/glossary): An Incoterms rule: the seller delivers to the named destination, and the buyer pays the import duty and taxes and handles import clearance.
- [Landed cost explained](https://border.bot/blog/landed-cost-explained)
- [Free landed cost calculator](https://border.bot/tools/landed-cost-calculator)