Free tariff cost calculator: see how a duty change hits your costs and margin

Enter your own numbers, click the button and read the result. These tools give estimates for planning only. They use simplified formulas and the figures you enter, so check important decisions against your own data and advisers.

A duty rate change adds cost on each unit you import. The calculator applies your current and new duty rates to the unit cost, takes the difference as the added duty per unit, and multiplies by quantity for the total added duty cost. The new landed unit cost is the unit cost plus the new duty, plus any other landed cost per unit you enter.

Pass-through is the share of the added duty you recover by raising your selling price. Whatever you do not pass on comes out of your margin. If you also enter a selling price, the calculator shows your margin percentage before and after the change.

Worked example

This is an example only, using made-up round numbers to show the arithmetic. They are not benchmarks, and the results were produced by this page's calculator script.

Inputs: unit cost 20.00, quantity 5,000, current duty 5%, new duty 25%, pass-through 40%, no other landed cost, current selling price 40.00.

Results:

• Added duty cost: 20,000.00 in total (4.00 per unit)
• New landed unit cost: 25.00 (was 21.00)
• Recovered through a higher price: 8,000.00
• Margin impact after pass-through: -12,000.00
• Margin: 47.5% before, 39.9% after (-7.6 points)

This tariff cost calculator is most useful when:

• A duty rate change has been announced or proposed and you want a quick view of the effect on unit cost.
• You are deciding how much of an increase to pass on to customers and how much to absorb.
• You are comparing supplier countries or products with different duty rates before asking for a formal assessment.
• You are preparing figures for a conversation with your customs broker, finance team or customers.

If the numbers point to a bigger question, such as which suppliers, inventory policies or logistics routes to change, our supply chain consulting can help you work through it.

How does a tariff change affect landed cost?

A higher duty rate adds cost on every unit imported. The added cost per unit is the unit cost times the change in duty rate, and the new landed unit cost includes it.

Where do I find the duty rate to enter?

Duty rates depend on how the product is classified, its country of origin and the trade measures in force, and these can change. Confirm the correct rate with a customs broker; this calculator does not look up rates.

What does the pass-through percentage mean?

It is the share of the added duty that you recover by raising your selling price. At 100 percent you recover all of it, so your margin per unit in currency terms is unchanged; at 0 percent you absorb all of it.

Is this tariff cost calculator legal or customs advice?

No. It is a planning estimate based on simple arithmetic and the numbers you enter. Duty rates, valuation and eligibility for any exemptions must be confirmed with a customs broker or counsel.

Does it include freight and other costs?

Only if you enter them. Use the optional other landed cost per unit field for freight, insurance and fees. Duty is applied to the unit cost you enter, so adjust that figure if your customs value is different.

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