Landed Cost Calculator
See your real per-garment cost — FOB + freight + import duty + clearance — delivered to your country.
What is landed cost?
Landed cost is the true total cost of a garment delivered to your country — not just the factory price. It adds international freight, import duty, and customs clearance to the FOB price, giving you the real per-piece cost before you mark it up for sale.
The Landed Cost Calculator above takes your FOB price and destination and estimates each component, so you can compare sourcing options honestly and avoid surprises after shipping.
How the landed cost calculator works
Enter four inputs and the tool builds your delivered cost:
- FOB price per piece — the factory cost from your quote.
- Order quantity — used for the order total.
- Destination country — sets an indicative apparel import-duty rate.
- Freight mode — sea or air, which changes transit cost.
A worked example
A garment with a $4.50 FOB price shipped by sea to the USA adds roughly $0.35 freight, about 16.5% duty ($0.80), and a small clearance fee — landing near $5.75 per piece, a 28% uplift over the factory price. The same garment to the UAE, with lower duty, lands for less.
Why landed cost matters
Two quotes with the same FOB price can have very different real costs once duty and freight are included. Calculating landed cost lets you compare countries and suppliers on a like-for-like basis, set accurate retail prices, and protect your margin. It is also essential for cash-flow planning, since duty and freight are paid at different stages.
How to reduce your landed cost
- Consolidate orders to ship a fuller container and cut per-piece freight.
- Choose sea over air when timelines allow.
- Check trade agreements — India–Australia ECTA and India–UAE CEPA can reduce or remove apparel duty.
- Confirm the correct HS code; misclassification can mean paying a higher duty rate than necessary.
Frequently Asked Questions
What is the difference between FOB and landed cost?
FOB is the factory price of packed goods at the origin port. Landed cost adds freight, import duty, and customs clearance to give the true delivered cost in your country.
How is import duty on clothing calculated?
Duty is a percentage of the customs value (usually CIF: FOB + freight + insurance). The rate depends on the garment’s HS code, fabric composition, and destination country — for example, knit cotton apparel is around 16.5% into the USA and 12% into the UK/EU.
Can a trade agreement lower my duty?
Yes. Agreements such as India–Australia ECTA and India–UAE CEPA reduce or eliminate duty on many textile lines. We can advise on duty-saving classifications.
Is sea or air freight cheaper?
Sea freight is far cheaper per piece but takes around four weeks; air is faster but several times more expensive. The calculator lets you compare both.
Are these duty rates exact?
They are indicative averages for knit cotton apparel. Your exact rate depends on the HS code and current tariff schedules — confirm with your customs broker or ask our export team.