Free tool
Landed cost & retail margin calculator
Find out what a product really costs once it is in your warehouse, and what you would need to charge to hit your margins at wholesale and at retail. Everything is calculated from the numbers you type in, on your device. Nothing is sent anywhere.
Your numbers
Enter your supplier's unit cost to get started. Results update as you type.
- Landed cost per unit
- —
- Wholesale price
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- Retail price needed for the retailer's margin
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- Cash needed for a first order
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| Who sells | Per unit | Margin | Markup |
|---|---|---|---|
| You, at wholesale | — | — | — |
| Retailer, at retail | — | — | — |
These are estimates from the numbers you entered. We don't supply duty, freight or price data: confirm rates and costs with your customs broker, freight forwarder and supplier before you commit to an order.
How the sums work
What is landed cost?
Landed cost is what a product costs you once it has arrived and cleared customs, not just what the factory charges. The supplier's quote is one part. Freight, insurance, duties, port and clearance fees and any per-unit packaging or fulfilment are the rest. Pricing from the quote alone is a common way to end up with less margin than you planned.
Landed cost per unit = unit cost + packaging and fulfilment per unit + (freight + insurance + duty + other import costs) ÷ units
Duty here is the flat fees you enter plus your duty rate applied to the product cost of the shipment (unit cost × units).
Margin or markup?
They describe the same profit from two angles, and mixing them up is easy to do. Margin is profit as a share of the selling price. Markup is profit as a share of the cost. For the same sale, markup is always the bigger number.
Margin = (price − cost) ÷ price · Markup = (price − cost) ÷ cost
Example: you pay six dollars for a product and sell it for ten. Profit is four dollars, so margin is 40% and markup is 66.7%.
From landed cost to a shelf price
Your wholesale price is the price at which your landed cost leaves you the margin you want. The retail price is the price at which the retailer keeps their margin on what they paid you. Keystone pricing is the common rule of thumb where retail is twice wholesale, which is a 50% retailer margin. The retail figure here is a starting point for your pricing conversation, not what the market will bear.
Wholesale price = landed cost ÷ (1 − your margin) · Retail price = wholesale price ÷ (1 − retailer's margin)
Pricing and sourcing are part of what we help product owners work through before they commit money to a first order. See how our process works.
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