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FinToolSuite
Updated April 20, 2026 · Business & Startup · Educational use only ·

Landed vs Ex Works Calculator

DIY import vs DDP quote.

Compare DIY landed cost (Ex Works price plus logistics and duty) vs a delivered duty-paid quote to see whether handling shipping yourself wins.

What this tool does

This tool compares the total landed cost of managing imports independently against a delivered duty paid (DDP) quote from a supplier. It calculates your ex-works price plus logistics expenses and applicable duties to show what you'd pay by handling the import yourself, then compares this to a fixed DDP quote price. The result shows the numerical difference and percentage gap between the two approaches. The duty rate and quoted DDP price are the inputs that typically shift the outcome most. A common scenario involves a manufacturer evaluating whether to negotiate shipping and customs clearance separately or accept an all-in supplier quote. The calculation assumes duty rates remain constant and doesn't account for variables like currency fluctuations, additional regulatory fees, or timing differences in payment terms between the two options.


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Formula Used
EXW price
Logistics
Duty
DDP quote

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Comparing supplier quotes: an EXW (Ex Works) quote shows only the factory cost. A DDP (Delivered Duty Paid) quote shows final landed cost. DIY landed cost (EXW + your logistics + duty) vs DDP quote often shows savings of 10-20%, but with added complexity (customs, freight, timing) that founders underestimate.

1,000 EXW + 200 logistics + 10% duty (100) = 1,300 DIY landed. DDP quote 1,500. Savings 200 (13%) by handling logistics yourself. Worth it for experienced importers; new importers often lose 20-40% of the 'savings' to mistakes, delays, and unexpected customs issues on first few shipments.

When DDP wins: first-time importers without customs broker relationship, small shipments where complexity exceeds savings, urgent deliveries where timing risk matters, high-stakes goods where shipping damage would be costly. When DIY wins: established import operations with broker relationships, large volume contracts where 10-15% savings = meaningful money, commodity goods with low shipping risk.

Quick example

With exw price of 10,000 and diy logistics cost of 2,000 (plus duty of 10% and ddp quoted price of 15,000), the result is 2,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter EXW Price, DIY Logistics Cost, Duty %, and DDP Quoted Price. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the option with the lower calculated total changes.

What's happening under the hood

DIY landed = EXW + logistics + duty. Savings = DDP - DIY landed. Savings % = savings ÷ DDP × 100. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.

Example Scenario

££10,000 EXW + ££2,000 + 10% duty vs ££15,000 DDP = 2,000.00.

Inputs

EXW Price:£10,000
DIY Logistics Cost:£2,000
Duty %:10
DDP Quoted Price:£15,000
Expected Result2,000.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes the landed cost of a DIY import arrangement by adding the ex works price, total logistics cost, and duty charges (calculated as a percentage of the ex works price). It then calculates savings by subtracting this DIY landed total from the supplier's delivered duty paid quote. The model treats duty as a fixed percentage of the ex works price and assumes logistics costs remain constant regardless of order volume or timing. It does not account for currency fluctuations, administrative overhead, potential delays, negotiation margins, or the risk that actual duty assessments may differ from the stated percentage. The comparison assumes both options are available and that all quoted prices remain valid.

Frequently Asked Questions

Are DDP quotes always more?
Usually yes - supplier adds margin on top of their landed cost. Typical DDP mark-up: 10-25% over DIY landed. Some honest suppliers quote DDP at cost plus small admin fee, but that's rare. Assume 15-20% upcharge in DDP quotes.
Hidden DIY costs?
Customs broker fees (30-150/shipment), inspection fees if customs flags shipment, demurrage fees if containers delayed at port, damages without proper insurance, paperwork errors causing delays. First-time importers often lose 20-40% of theoretical savings to these surprises.
When does DDP make sense?
First few shipments (learning curve), small shipments under 5k (complexity > savings), urgent timelines, novel products with unclear duty codes, emerging markets with corrupt customs, goods with high theft/damage risk.
How to reduce logistics cost?
Use freight forwarder instead of carrier directly (better rates, more options). Consolidate multiple suppliers into single shipment. Book regular volumes at contract rates (30-50% off spot rates). Ocean vs air (ocean 10-20% of air cost if time permits).

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