True Cost Calculator: China to Your Door

Most first-time importers make the same mistake. They see a factory price of $8 per unit and think that’s close to their cost. It isn’t. By the time goods arrive at your warehouse, the real cost per unit can be 50 to 100% higher. This guide walks you through every cost component so you know your actual landed cost before you place an order.

Understanding landed cost is how you figure out whether a product is worth importing at all.

Interactive Landed Cost Calculator

Enter your order details below to estimate your real cost from factory to warehouse.

The Components of Your Landed Cost

Every import from China has the same set of cost components. The dollar amounts vary by product, weight, volume, and shipping method. But the categories are the same.

1. Product Cost (FOB Price)

This is what you pay the factory per unit. FOB (Free on Board) means the factory is responsible for the goods until they’re loaded on the vessel at the Chinese port. You’re responsible from that point.

FOB price varies by product, quantity, and negotiation. It’s almost always listed per unit. It does not include freight, customs, or any other cost.

If you want to learn how to negotiate a better FOB price, read our negotiating with Chinese suppliers guide.

2. Freight Cost

How you ship affects your cost significantly. The three main options:

Express shipping (DHL, FedEx, UPS): $5 to $8 per kg all in. Best for samples and small orders under 100 kg. Fast (3 to 5 days), but expensive at scale.

Air freight: $4 to $7 per kg all in, including destination charges. Transit time is 5 to 10 days. Practical for 100 to 500 kg shipments where speed matters.

Sea freight LCL (Less than Container Load): This is what most small and medium importers use. You share space in a container with other importers. Cost is calculated by CBM (cubic meter) or weight, whichever is greater.

Current LCL rates as of early 2026 run approximately $120 to $200 per CBM for the ocean leg, plus $50 to $90 per CBM in destination charges. Total all-in LCL cost from China to a US port is typically $200 to $350 per CBM.

Sea freight FCL (Full Container Load): Cheapest per unit but only practical at high volume. A 20-foot container holds roughly 25 to 28 CBM. A 40-foot holds 55 to 60 CBM.

For a full comparison of shipping methods, see our sea vs. air vs. express guide.

To calculate your shipment’s CBM: multiply length x width x height in meters. For example, a box that is 0.5m x 0.4m x 0.3m = 0.06 CBM. If you have 100 such boxes, your total is 6 CBM.

3. Customs Duties

The US charges import duty on most goods. The rate is determined by the HTS (Harmonized Tariff Schedule) code for your specific product. For consumer electronics, standard duty rates typically range from 0 to 3.9%, though some categories go higher.

On top of standard duty, Chinese goods are subject to Section 301 tariffs. These additional tariffs range from 7.5% to 25% depending on the product category. As of early 2026, most consumer electronics from China carry a Section 301 rate of 7.5% to 25%.

Both tariffs are calculated on the customs value of your goods, which is typically the FOB price plus freight (CIF value in many cases). Your customs broker will calculate the exact amount.

Use our US customs and duties guide to look up rates for your specific product.

Practical example: If your FOB value is $4,000 and Section 301 tariff is 25%, you’re paying $1,000 in Section 301 tariffs alone. This is not a line item to overlook.

4. Customs Broker Fee

Unless your shipment is under $2,500 (informal entry), you need a licensed customs broker to file your customs entry. Broker fees typically run $150 to $500 per shipment depending on complexity and broker.

For recurring imports, you can negotiate a flat rate with your broker. Many importers who import monthly pay $200 to $350 per entry.

Your broker also handles:

• Filing the ISF (Importer Security Filing, required 24 hours before vessel departure)
• Paying duties on your behalf
• Coordinating with CBP if there are holds or inspections

5. Port Fees and Local Delivery

When your container arrives at the US port, you pay:

• Harbor Maintenance Fee (HMF): 0.125% of cargo value. Small but real.
• Merchandise Processing Fee (MPF): 0.3464% of cargo value, min $31.67, max $614.
• Drayage (port to warehouse): $300 to $600 depending on distance and port congestion.
• Destination delivery charges (DDC): For LCL, typically included in the destination charges from your freight forwarder.

For LCL shipments, your freight forwarder usually bundles most of these into their all-in quote. Always ask for an itemized breakdown so you know what you’re actually paying.

6. Pre-Shipment Inspection Fee

This is optional but strongly recommended, especially for first orders. A third-party inspector visits the factory, tests a sample of your production run, and sends you a report before goods ship.

Cost: $250 to $350 for a standard one-day inspection at most Chinese inspection companies.

If the inspection finds defects, you can hold the 70% balance payment and require the factory to fix problems before shipping. Without an inspection, you find out about quality issues when goods arrive in your warehouse, which is much harder to fix.

Read our quality control guide for how to hire an inspector and what they check.

Worked Example: 500 Units of Wireless Earbuds

Let’s run the numbers on a real import scenario.

Product: Wireless TWS earbuds, mid-range quality Quantity: 500 units FOB price: $8 per unit

Cost Breakdown

You paid $8 FOB. Your real cost per unit is $12.59. That’s a 57% increase from FOB to door.

What Does Margin Look Like?

With a $12.59 landed cost, here’s how the math works at different retail prices:

These are gross margins before Amazon fees, advertising, or other selling costs. If you sell on Amazon, subtract 15% referral fee plus FBA fees (roughly $3 to $5 per unit for a small electronics product). That changes the picture significantly.

At $24.99 retail on Amazon: $12.40 gross - $3.75 referral fee (15%) - $4.00 FBA = $4.65 net per unit. On 500 units, that’s $2,325 profit before advertising.

At $39.99 retail on Amazon: $27.40 gross - $6.00 referral fee - $4.00 FBA = $17.40 net per unit. On 500 units, that’s $8,700 profit before advertising.

Pricing matters more than FOB price in most cases.

How Shipping Method Changes the Numbers

Let’s recalculate the same 500 units of earbuds shipped by air instead of sea.

Assume 500 units of earbuds weigh about 75 kg total (box + packaging).

In this case, air freight is actually comparable to sea freight because the shipment is small and light. Sea freight wins at larger, heavier volumes.

What This Means for Your First Order

Run this calculation before you contact a single supplier. If the math doesn’t work at the retail price you can realistically charge, the product isn’t right.

The formula is simple:

Viable if: (Retail price x 0.5) is greater than your estimated landed cost per unit.

That 50% gross margin threshold gives you room to pay platform fees, run ads, and still make money. Products that don’t clear that threshold are either priced wrong or the wrong product.

Cost-Reducing Levers

Once you know your landed cost, here’s what you can do to reduce it.

Negotiate FOB price down. Every dollar off FOB saves money on duties too (since duties are calculated on FOB value). A 10% reduction in FOB on a $4,000 order saves $400 in product cost plus $100 in Section 301 tariff (at 25%).

Increase order volume. Higher quantities mean lower per-unit FOB prices and better freight rates (since you’re filling more of a container).

Check your HTS code carefully. Different HTS codes carry different duty rates. A customs broker or trade attorney can advise if a more accurate classification saves you money. Don’t misclassify intentionally, but make sure you’re using the right code.

Use a freight forwarder vs. buying freight from your factory. Factories often offer shipping, but they mark it up. A direct freight forwarder relationship usually gets you better rates.

For a full walkthrough of the import process that connects to these costs, read our beginner’s guide to importing electronics from China.

FAQ

What is landed cost and why does it matter? Landed cost is the total cost of getting goods from the factory to your warehouse, including product cost, freight, customs duties, broker fees, and delivery. It matters because the factory FOB price is only part of what you pay. For most electronics from China, landed cost is 40 to 80% higher than FOB price.

How much are Section 301 tariffs on electronics from China? Section 301 tariffs on consumer electronics from China range from 7.5 to 25% depending on the specific product category and HTS code. These are applied on top of standard import duties. As of early 2026, most consumer electronics fall in the 7.5 to 25% range. Check with your customs broker for the rate on your specific product.

How do I calculate CBM for sea freight? CBM (cubic meter) is calculated by multiplying length x width x height in meters. If one carton is 0.5m x 0.4m x 0.3m, that’s 0.06 CBM per carton. Multiply by your total number of cartons to get total CBM. LCL freight is billed by CBM or weight (whichever is greater), so you also need to compare against your total weight in metric tons.

When is air freight cheaper than sea freight? Air freight is sometimes cheaper than sea freight for small, light shipments where LCL minimum charges make sea freight expensive. As a general rule, air freight is competitive for shipments under 100 kg. Above that, sea freight almost always wins on cost, though it takes 25 to 40 days instead of 5 to 10.

Do I need a customs broker to import from China? For shipments over $2,500, you need a formal customs entry, and most importers use a licensed customs broker to file this. Broker fees are $150 to $500 per shipment. For your first order, using a broker is strongly recommended regardless of shipment value. They’ll catch classification errors and handle any issues with CBP.

What gross margin do I need to make importing worthwhile? A 50% gross margin (retail minus landed cost divided by retail) is a common minimum threshold. This gives you room to pay platform fees (Amazon takes 15% referral plus FBA fees), run advertising, and still profit. Products with less than 40% gross margin are very hard to make work after selling costs.