The supplier’s foreign currency invoice is only one part of the cost of imported stock. Freight, insurance, entered import charges and unusable units can change what each sellable item really costs. The Landed Cost Calculator collects those amounts without pretending to calculate a current customs assessment.
Convert the invoice with a stated rate
Use a foreign invoice amount of 100 and an illustrative PKR exchange rate of 280 per source currency unit. The invoice becomes PKR 28,000. This is a made up rate for checking arithmetic, not a quotation for a current currency transaction.
Add freight PKR 5,000, insurance PKR 1,000, manually determined duties and taxes PKR 9,000, handling PKR 500 and other charges PKR 500. Total shipment cost before salvage is PKR 44,000.
Divide by the usable stock
For 100 purchased units with 1% expected loss, one unit is unusable and 99 remain. If salvage proceeds are PKR 1,000, net cost to allocate is PKR 43,000. Cost per usable unit is approximately PKR 434.34.
Dividing the net cost by all 100 purchased units would understate the cost of the 99 units available to sell. The lost unit still consumed part of the shipment expenditure unless its value was recovered through salvage.
Bring assessed charges into the tool as amounts
The duties and taxes input is a PKR amount supplied by you. The calculator does not choose a tariff classification, decide eligibility for an exemption or retrieve Pakistan customs rates. Use your shipment documents and appropriate professional assessment for those inputs.
If charges have already been included in a combined freight invoice, avoid entering them a second time. Similarly, treat salvage as a recovery only when it represents the amount you intend to allocate back against this shipment.
Use landed cost consistently in later pricing
The result is a stock cost allocation, not a retail price. Packaging for the customer, domestic delivery, advertising and selling fees still need to be covered. Target Selling Price Calculator can use this landed unit cost as its product cost input.
Record invoice currency, exchange rate source, charge documents and the stock inspection basis with the calculation. Estimated loss and final inspected loss may differ. Recalculate after receipt if that difference materially changes your cost. For supplier quantity discounts without an import conversion, Bulk Purchase Discount Calculator offers a simpler purchase batch view.