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How-to guide

How to Calculate Import Duty: Formula, Steps & Examples

Learn how to calculate Import Duty — the formula explained step by step, with worked examples and a free calculator to check your answer.

By CA Rohan Gupta, Chartered Accountant (ICAI) · Updated Jun 2026 · 2 min read

Calculating your total landed cost is straightforward once you know the Import Duty formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Import Duty Calculator.

What is Import Duty?

The Import Duty calculation tells you your total landed cost from a few simple inputs. The figure you are solving for here is the total landed cost, expressed in INR.

The Import Duty formula

The core formula is:

Total landed cost = Goods value + Goods value × Customs duty rate ÷ 100 + (Goods value + Goods value × Customs duty rate ÷ 100) × Import tax ÷ GST rate ÷ 100

Here is what each input means:

  • Goods value — a money amount. Example: ₹50,000.
  • Customs duty rate — a percentage, such as an annual rate. Example: 1%.
  • Import tax / GST rate — a percentage, such as an annual rate. Example: 18%.

How to calculate it step by step

  • Write down the goods value (for example, ₹50,000).
  • Write down the customs duty rate (for example, 1%).
  • Write down the import tax / gst rate (for example, 18%).
  • Apply the formula above to get your total landed cost.
  • Double-check the result with the Import Duty Calculator.

Worked examples

Example 1

Input / OutputValue
Goods value₹50,000
Customs duty rate1%
Import tax / GST rate18%
Total landed cost₹64,900.00
Total duty & tax₹14,900.00

With goods value of ₹50,000, customs duty rate of 1% and import tax / gst rate of 18%, the total landed cost works out to ₹64,900.00.

Example 2

With goods value of ₹1,00,000, customs duty rate of 1% and import tax / gst rate of 18%, the total landed cost works out to ₹1,29,800.00.

ResultValue
Total landed cost₹1,29,800.00
Total duty & tax₹29,800.00

Example 3

With goods value of ₹25,000, customs duty rate of 1% and import tax / gst rate of 18%, the total landed cost works out to ₹32,450.00.

ResultValue
Total landed cost₹32,450.00
Total duty & tax₹7,450.00

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the Import Duty Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring tax calculators with these tools: GST Calculator, Income Tax Calculator, HRA Calculator, Take-Home Salary Calculator, Old vs New Tax Regime Calculator.

Calculators in this guide

Frequently asked questions

The formula is: Total landed cost = Goods value + Goods value × Customs duty rate ÷ 100 + (Goods value + Goods value × Customs duty rate ÷ 100) × Import tax ÷ GST rate ÷ 100. With goods value of ₹50,000, customs duty rate of 1% and import tax / gst rate of 18%, the total landed cost works out to ₹64,900.00.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the Import Duty Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The total landed cost is expressed in INR. Make sure your inputs use matching units so the result is correct.

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CA Rohan Gupta · Chartered Accountant (ICAI)

CA Rohan Gupta is a practising Chartered Accountant advising individuals and businesses on income tax, GST and personal finance compliance in India.