True Landed Cost Calculator
Get a complete cost breakdown for your import shipment — duties, fees, shipping, insurance, customs broker, and scenario modeling across alternative origins. Updated for Section 122 (15% surcharge, active Feb 24, 2026).
What Is Landed Cost — and Why Importers Underestimate It
Landed cost is the total cost of getting an imported product from the factory to your US warehouse — including every fee, duty, and charge between the two points. Most importers budget based on the FOB invoice price and get surprised at the port. The full landed cost formula is:
Landed Cost = Product Cost + Ocean/Air Freight + Marine Insurance + Import Duty (MFN) + Section 301 / 232 / IEEPA Surcharges + Merchandise Processing Fee (MPF) + Harbor Maintenance Fee (HMF) + Customs Broker Fee
On a $50,000 China-origin electronics shipment in 2026, those additional costs commonly total $15,000–$25,000 — a 30–50% premium over the FOB price. The three biggest underestimated line items are the Section 301 tariff (7.5%–145% depending on HTS code and origin), the IEEPA baseline tariff (10% for most non-China countries), and MPF (0.3464% of commercial invoice value, $32.71 minimum, $634.62 maximum per entry).
Merchandise Processing Fee (MPF): 0.3464% of declared commercial value. Required on all formal entries. Harbor Maintenance Fee (HMF): 0.125% of commercial value, applies to ocean freight shipments. Section 301 (China): Additional duty on 4 tariff lists covering most manufactured goods — rates vary from 7.5% to 145% by HTS code. Section 232 (Steel & Aluminum): 25% on steel products (HTS chapters 72–73), 10% on aluminum (chapter 76), from most origins. Section 122 surcharge: 15% surcharge active since February 24, 2026, applied across broad product categories.
Why does this matter for sourcing decisions? Because landed cost determines true margin, not FOB price. A Vietnam-origin product with a 12% MFN duty might have a lower landed cost than a China-origin product with a 0% MFN duty if the Section 301 surcharge on the China product is 25%. The only way to make accurate sourcing comparisons is to calculate the full duty stack for each origin country and HTS code combination — which is what this tool does automatically.
Note: Calculations are estimates for planning purposes. Actual landed cost depends on final CBP classification, port of entry, Incoterms, and carrier rates. Confirm all duty amounts with a licensed customs broker before filing entry.
Frequently Asked Questions — Landed Cost Calculation
What does landed cost include?
Landed cost includes product cost (FOB or EXW), international freight (ocean or air), marine cargo insurance (typically 0.5–1% of commercial value), US import duty (MFN base rate), any Section 301/232/IEEPA additional tariffs, Merchandise Processing Fee (MPF at 0.3464%), Harbor Maintenance Fee (HMF at 0.125% for ocean), and customs broker fees ($150–$500 per entry). Some importers also include port drayage, deconsolidation fees, and inland freight to warehouse.
How is import duty calculated?
Import duty is calculated as a percentage of the customs value (usually CIF — cost + insurance + freight). The duty rate is determined by the HTS code and country of origin. For a China-origin product with a 25% Section 301 tariff on top of a 5% MFN rate, the effective duty rate is 30% of the customs value. Enter your HTS code and country above to get the exact stacked rate.
What is the Merchandise Processing Fee (MPF)?
The MPF is a CBP user fee of 0.3464% of declared commercial value, with a minimum of $32.71 and a maximum of $634.62 per entry (2026 rates). It applies to all formal entries (shipments valued over $2,500). USMCA-qualifying imports from Canada and Mexico are exempt from MPF. The MPF is a fixed cost per entry — splitting large shipments into multiple entries increases total MPF paid.
How do Section 301 tariffs affect landed cost?
Section 301 tariffs add 7.5%–145% on top of the MFN base duty for goods originating in China, varying by HTS code and List (1–4B). They are stacked on top of base duties — so a product with a 10% MFN rate and a 25% Section 301 rate pays 35% total. Section 301 is the primary reason China-origin goods have dramatically higher landed costs than equivalent goods from Vietnam, Mexico, or India.
Can USMCA reduce my landed cost?
Yes. USMCA (the US-Mexico-Canada Agreement) provides 0% duty rates on qualifying goods from Canada and Mexico, plus MPF exemption. To qualify, goods must meet USMCA rules of origin — typically requiring sufficient regional value content or specific manufacturing transformations in North America. Goods that qualify can see landed cost reductions of 5–30% compared to non-preferential sourcing. The calculator flags USMCA eligibility automatically when you select Canada or Mexico as origin.
Shipment Details
Enter product, shipping, and classification details for a full landed cost analysis with scenario modeling.
Itemized Landed Cost
Scenario Modeling — Alternative Origins
Educational estimates only — actual duties determined by CBP at entry. Learn more
Educational estimates based on published tariff schedules and AI analysis. Not a CBP-binding determination. Full legal terms on AI Disclaimer and Terms of Service.