How do I calculate my true landed cost per unit, including duty, freight and GST?

The short answer

Total landed cost = CIF value (product + insurance + freight) + Basic Customs Duty + Social Welfare Surcharge (10% of BCD) + IGST on the sum of all of that, then divide by units in the shipment. Run this per SKU in a spreadsheet you update every time freight rates or duty slabs move, because the number you calculated for your last order isn't automatically right for your next one.

A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.

Here are the resources

Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.

3 resources 2 India-specific 3 link-checked Read Use

Read

📄 Article

✓ Link checked India Free Intermediate

Why we picked it A government body's own explanation of the BCD + SWS + IGST formula that actually determines your landed cost into India, the calculation behind every calculator tool.

Calculation of Import Duty in India, Formula, Online Tools and Exemptions

From investindia.gov.in by Invest India

BCD, SWS and IGST are the three layers on top of CIF value
SWS is calculated as 10% of BCD
Explains exemptions worth checking before you assume the worst-case rate

Open investindia.gov.in →

📄 Article

✓ Link checked Free Intermediate

Why we picked it Goes deeper than the beginner explainers on how landed cost flows into inventory accounting and eventually into COGS when a unit sells.

Understanding Landed Cost: What It Is and How to Calculate It

From ledgergurus.com by LedgerGurus

Landed cost sits on the balance sheet until the unit sells
At sale, landed cost per unit moves into COGS on the P&L
Getting this wrong distorts both inventory value and margin

Open ledgergurus.com →

Use

🛠️ Tool

✓ Link checked India Freemium Beginner

Why we picked it Turns the BCD/SWS/IGST formula into a usable tool, HS-code-based, current-rate landed-cost estimate before you commit to an order.

India Import Duty Calculator

From dutydecoder.com by DutyDecoder

AI-assisted HS code lookup for accurate tariff matching
Uses current 2026 MFN tariff schedules
Outputs a full landed-cost estimate, not just duty

Open dutydecoder.com →

People also ask

What's the actual difference between COGS and landed cost, and why does mixing them up wreck my margins? COGS is the accounting line, what a unit cost you once it's sitting in inventory, ready to sell. Landed cost is the fuller number: product cost plu... Beginner 3 resources → What import duty and GST will I actually pay bringing goods into India? Expect three layers on top of your CIF value: Basic Customs Duty (varies hugely by HS code), a 10% Social Welfare Surcharge on that duty, and IGST ... Intermediate 3 resources → How do I set my price once I actually know my costs, what margin should I be targeting? Cost-plus is the floor, not the strategy: take your fully landed cost, add your target gross margin (most D2C brands need a high gross margin to su... Intermediate 3 resources → What free tools or calculators can I use to model landed cost before I place an order? For India specifically, run your product through DutyDecoder or the official ICEGATE customs duty calculator to get duty and IGST estimates by HS c... Beginner 3 resources → My factory quote and my actual landed cost are miles apart, what am I missing? The usual gaps: freight and insurance (often quoted separately or not at all by the factory), customs duty and IGST (which the factory has no visib... Advanced 3 resources → How do I estimate my true landed cost before I commit to an order? Landed cost is CIF value (product + insurance + freight) plus Basic Customs Duty, Social Welfare Surcharge, and IGST on top of that, not just what ... Intermediate 4 resources →

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