Landed Cost Calculator

Why landed cost matters for Australian importers and wholesalers

Landed cost is the total cost of a product once it arrives at your warehouse door. It goes well beyond the FOB (Free on Board) price your supplier quotes - it includes international freight, marine insurance, customs duty, import GST, quarantine inspection fees, port handling charges, and local cartage. For Australian wholesalers and distributors importing from China, the US, Europe, or New Zealand, landed cost can be 20-40% higher than the factory price.

Getting landed cost wrong means your pricing is wrong. If you base your selling price on the FOB cost alone, you will underprice your products and erode margin on every sale. Accurate landed cost calculation is the foundation of competitive, profitable pricing in wholesale and distribution.

How to use this landed cost calculator

1. Enter the product cost in the supplier's currency and select the currency - the calculator converts to AUD using your exchange rate.
2. Enter the quantity ordered, freight cost, and insurance cost for the shipment.
3. Select or enter the customs duty rate for your product's tariff classification.
4. Add any other costs - quarantine fees, port charges, local delivery.
5. Optionally enter a target margin to see the selling price needed to achieve it.

Understanding Australian customs duty

Customs duty in Australia is determined by the product's tariff classification under the Harmonized System. General duty rates range from 0% to 10% for most goods. Free Trade Agreements (FTAs) with countries like New Zealand, China, Japan, Korea, and ASEAN nations can reduce or eliminate duty entirely. You can look up duty rates using the Australian Border Force tariff classification database.

Import GST and input tax credits

Import GST is 10% charged on the customs value (goods + duty + freight + insurance). While it increases your upfront cost, if you are registered for GST you can claim it back as an input tax credit on your next BAS. This means import GST is a cash flow cost, not a permanent cost - but you still need to factor it into your working capital requirements and landed cost calculations for pricing purposes.

How does AP automation help with landed cost tracking?

Every component of landed cost arrives as a separate invoice - the supplier invoice, freight forwarder invoice, customs broker invoice, cartage invoice. When these are processed manually, costs often get miscoded or delayed, making it impossible to calculate accurate landed cost per SKU. Automating accounts payable ensures every cost component is captured, coded to the right purchase order, and available for landed cost analysis in real time.