Sourcing TCO & Tariff Calculator
Work out the true landed cost of imported goods — not just the sticker price. Add freight, customs duty, handling fees, defect/reject loss and the carrying cost of long lead times to reveal the real total cost of ownership, then compare two origins (for example Ukraine vs an alternative) using your own figures.
Illustrative — edit with your own figures. All values below are editable placeholders, not quoted prices or official duty rates. Enter your own quotes, tariff lines and rates to model real landed costs.
On these figures, Ukraine has the lower total cost of ownership — about $206 (2% per unit) cheaper across the order. A lower ex-works price is often offset by freight, duty, defects and the carrying cost of longer lead times.
Ukraine
$11.20 / unit TCO
Landed unit cost $11.00 · Total TCO $11,202 for 1,000 units
| Goods (unit price) | $10.00 | 89% |
| Freight / shipping | $0.80 | 7% |
| Customs duty | $0.00 | 0% |
| Other fees | $0.20 | 2% |
| Defect / reject loss | $0.11 | 1% |
| Lead-time carrying cost | $0.09 | 1% |
| Total cost per unit | $11.20 | 100% |
Alternative origin
$11.41 / unit TCO
Landed unit cost $10.87 · Total TCO $11,408 for 1,000 units
| Goods (unit price) | $8.50 | 75% |
| Freight / shipping | $1.60 | 14% |
| Customs duty | $0.51 | 4% |
| Other fees | $0.26 | 2% |
| Defect / reject loss | $0.34 | 3% |
| Lead-time carrying cost | $0.21 | 2% |
| Total cost per unit | $11.41 | 100% |
How this is calculated
Landed unit cost = unit price + freight per unit + customs duty + other fees. Duty and fees are applied as a percentage of the unit price (a CIF-style simplification).
Defect / reject loss spreads the cost of unusable units across the good ones: landed cost ÷ (1 − defect rate).
Lead-time carrying cost monetises capital tied up in transit: defect-adjusted cost × annual carrying cost % × (lead-time days ÷ 365).
Total cost of ownership (TCO) per unit = defect-adjusted landed cost + lead-time carrying cost. This is a planning estimate; consult a licensed customs broker for binding tariff classifications. Currency is a display label only — no exchange-rate conversion is applied.
Why the cheapest quote is rarely the cheapest source
Procurement teams often anchor on ex-works unit price, but the decision that matters is total cost of ownership. A low headline price from a distant supplier can be eroded by higher freight, import duties, quality failures and the working capital tied up while goods sit on the water for weeks. Nearshoring to Ukraine and the wider EU neighbourhood can shorten lead times dramatically and, under the EU–Ukraine deep and comprehensive free-trade area, reduce tariff exposure for many product lines.
This tool is deliberately input-driven: it ships with neutral placeholder numbers so you can see how the model behaves, then you replace them with your own quotes and rates. Pair it with our China+1 vs Ukraine comparator to weigh the qualitative factors — risk, certifications and proximity — alongside the numbers.
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This calculator is provided for planning and educational purposes by Made in Ukraine, an independent Ukrainian nonprofit. It does not constitute customs, tax or legal advice. Verify duty rates against your tariff line and consult a licensed customs broker before committing to an order.