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 / Output | Value |
|---|---|
| Goods value | ₹50,000 |
| Customs duty rate | 1% |
| Import tax / GST rate | 18% |
| 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.
| Result | Value |
|---|---|
| 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.
| Result | Value |
|---|---|
| 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.
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