Purchase Order Landed Unit Cost Calculator

Method and assumptions

Total entered charges = freight + insurance + handling + other. Landed order total = quantity × supplier unit price + entered charges. Landed unit cost divides the total by quantity. Marked-up price = landed unit cost × (1 + markup percentage); markup is not the same as gross margin.

Worked example

For 120 units at $4.20 each, the goods cost $504. Adding $98 freight, $12 insurance, $30 handling, and $20 other entered charges gives $664 total, or $5.53 per unit. A 35% markup gives a reference price of about $7.47.

How to use the result

Use a consistent inclusion policy for each order and document which charges were entered. Tax, duties, capitalization, and accounting treatment are intentionally not estimated; confirm them through your own records and applicable guidance.

Input meanings and limits

• Order quantity (units): Must be at least one unit.
• Supplier price per unit: Purchase price before the entered order-level charges.
• Freight charge: Enter the freight amount for this order.
• Insurance charge: Enter only if applicable to this purchase.
• Handling charge: Enter your order-level handling amount.
• Other entered charges: Use for charges you choose to include; no tax preset is applied.
• Markup over landed unit cost: Optional price reference, not a margin target.

Inputs accept finite, nonnegative values in the displayed ranges; percentages are bounded to 0–100% (with 99.99% maximum where division by the remaining share is used), and whole-unit or month fields require integers. Currency figures are shown in USD for convenience; enter values in one consistent currency. This is a planning worksheet, not financial, legal, tax, or accounting advice.

Related calculators

Inventory reorder point calculator and Economic order quantity calculator.