Most importers quote their products based on the supplier's unit price and a rough freight estimate. Then the shipment arrives and the real bill — customs duties, Section 301 tariffs, MPF, HMF, ISF filing, broker fees, and drayage — is 30–50% higher than expected. That gap is why landed cost calculations matter.
This guide walks through every cost component you need to include, the exact Excel formulas to calculate them, and a free template you can download and use today.
What Is Landed Cost?
Landed cost is the total cost to get an imported product to your US warehouse, fully cleared through customs. It includes every cost from the supplier's door to yours — not just the product price and freight.
| Cost Category | What It Includes | Typical Range |
|---|---|---|
| Supplier Cost | Unit price × quantity | Varies |
| Freight | Ocean or air freight charges | $500 – $5,000+ per container |
| Origin Charges | Export trucking, port fees, origin docs | $150 – $400 |
| Insurance | Cargo insurance (~0.3% of value) | $30 – $500 |
| US Customs Duty | Based on HTS code duty rate × CIF value | 0% – 25%+ |
| Section 301 Tariff | Additional China tariff (if applicable) | 0%, 7.5%, 25% |
| MPF | Merchandise Processing Fee (0.3464%) | $31.67 – $614.35 |
| HMF | Harbor Maintenance Fee (0.125%, ocean only) | Varies |
| ISF Filing | Importer Security Filing | $35 – $50 |
| Customs Broker | Broker fee for customs clearance | $100 – $300 |
| Drayage | Port to your warehouse delivery | $200 – $800 |
Step 1 — Find Your HTS Code and Duty Rate
Every product imported into the US has a 10-digit HTS (Harmonized Tariff Schedule) code. The code determines your base customs duty rate. Look yours up at hts.usitc.gov — search by product description.
Step 2 — Check Your Section 301 Tariff Rate
If you are importing from China, you may owe an additional Section 301 tariff on top of the base duty. Current rates are 0%, 7.5%, or 25% depending on the product category. Check the current list at ustr.gov — rates and exclusions change, so verify before you quote.
Step 3 — Calculate the CIF Value
CIF (Cost, Insurance, Freight) is the basis US Customs uses to calculate duties. If your incoterm is FOB, you need to add freight and insurance to get CIF.
Step 4 — Calculate US Customs Duty
Step 5 — Calculate Section 301 Tariff (China imports)
Step 6 — Calculate MPF (Merchandise Processing Fee)
MPF is charged by US Customs on most commercial imports. The rate is 0.3464% of CIF value, with a minimum of $31.67 and a maximum of $614.35 per entry.
Step 7 — Calculate HMF (Harbor Maintenance Fee)
HMF applies to ocean freight shipments only. The rate is 0.125% of CIF value — no minimum or maximum.
Step 8 — Add Fixed Fees
These are negotiated or fixed costs you collect from your broker and freight forwarder:
- ISF Filing Fee: ~$35–$50 (required for ocean shipments, filed 24h before vessel departure)
- Customs Broker Fee: typically $150–$300 per entry
- Drayage / Inland Delivery: port to your warehouse, get a quote from your trucker
Step 9 — Build the Summary in Excel
Once you have all the components, sum them for total landed cost and divide by quantity for per-unit cost:
Full Example — 500 units imported from China
Unit price $12.50 · HTS duty 7.5% · Section 301 25% · Ocean freight $850 · Fixed fees $530
| Cost Item | Amount |
|---|---|
| Supplier Cost (500 × $12.50) | $6,250.00 |
| Ocean Freight | $850.00 |
| Origin Charges | $220.00 |
| Insurance | $45.00 |
| CIF Value | $7,145.00 |
| Customs Duty (7.5%) | $535.88 |
| Section 301 Tariff (25%) | $1,786.25 |
| MPF (min $31.67) | $31.67 |
| HMF (0.125%) | $8.93 |
| ISF + Broker + Drayage | $530.00 |
| Total Landed Cost | $10,257.73 |
| Landed Cost Per Unit | $20.52 |
| Suggested Price (40% margin) | $34.19 |
The supplier quoted $12.50 per unit. The actual landed cost is $20.52 — 64% higher. Without this calculation, any price below ~$21 would lose money.
How to Build This in Excel
Set up an inputs section
List every input in its own cell — unit price, quantity, freight, duty rate, etc. Color these blue so anyone using the file knows which cells to edit.
Calculate CIF value
Reference your input cells: =(UnitPrice*Qty)+Freight+Insurance. All subsequent duty calculations reference this cell.
Use MAX/MIN for MPF
MPF has a floor and ceiling: =MAX(MIN(CIF*0.003464, 614.35), 31.67). Hardcoding the rate and bounds prevents errors when values change.
Add a comparison sheet
Duplicate your formula structure across 3 columns — one per supplier. Use conditional formatting to highlight the lowest per-unit landed cost automatically.
FAQ
Free Download: US Import Landed Cost Calculator (.xlsx)
The exact template used in this guide — enter your shipment details and get total landed cost, per-unit cost, and suggested selling price instantly.
Includes: Calculator · 3-Supplier Comparison · HTS Duty Rate Reference · No sign-up required
⬇ Download Landed Cost Calculator — Free