When quoting an international buyer, understanding the difference between FOB (Free On Board) and CIF (Cost, Insurance and Freight) is important.
FOB pricing generally covers the goods and the seller’s obligations up to the agreed point of shipment, while CIF pricing includes the cost of the goods, insurance and freight to the destination port.
Use the FOB vs CIF Calculator below to estimate the difference and understand how freight and insurance affect your export price.
FOB vs CIF Price Calculator Pro
Compare FOB and CIF Prices Instantly — costs, responsibilities and profitability.
Free ToolInputs
Uses FOB price from the FOB tab (or enter override below).
Comparison uses FOB and CIF calculations. Fill FOB and CIF tabs, then Calculate.
Reference table of typical responsibilities under FOB and CIF (Incoterms style overview).
Answer the questions, then Calculate for a recommendation.
Results
Buyer vs Seller Responsibilities
| Activity | FOB | CIF |
|---|---|---|
| Product | Seller | Seller |
| Packing | Seller | Seller |
| Transport to port | Seller | Seller |
| Export customs | Seller | Seller |
| Loading on vessel | Seller | Seller |
| Main freight | Buyer | Seller |
| Insurance (main carriage) | Buyer | Seller |
| Import customs | Buyer | Buyer |
| Destination delivery | Buyer | Buyer |
Risk under both FOB and CIF typically transfers when goods are on board at the origin port. Always confirm the Incoterms year and named place in the contract.
FOB Cost Breakdown
FOB vs CIF Price
💡 Smart Insights
🔮 What-If Analysis
What is FOB?
Free On Board — seller delivers goods on board at the named port of shipment. Buyer arranges and pays main carriage and insurance.
What is CIF?
Cost, Insurance and Freight — seller pays cost, minimum insurance and freight to the named destination port. Risk still transfers on loading at origin.
When to Choose FOB
Buyer has better freight rates, seller wants less logistics responsibility, or buyer insists on controlling the carrier.
When to Choose CIF
Buyer wants a simpler all-in price to destination port, or seller has competitive freight rates.
Frequently Asked Questions
What does FOB mean?
Free On Board — seller delivery point is on board the vessel at the origin port.
What does CIF mean?
Cost, Insurance and Freight to the named destination port, paid by the seller.
Does CIF mean seller bears risk until destination?
No. Risk typically transfers on loading at origin.
How is FOB price built?
Product + packing + inland + export clearance + loading + desired profit.
How is CIF price built?
FOB price + main freight + insurance.
Who pays freight under FOB?
The buyer.
Who pays freight under CIF?
The seller (included in CIF price).
Which is better for exporters?
Depends on freight competitiveness and buyer preference.
Can I quote both FOB and CIF?
Yes — many exporters offer both options.
Is CIF insurance full cover?
Standard CIF is minimum cover; buyer may buy more.
Do Incoterms replace the contract?
No — they allocate cost and risk points.
FOB for air freight?
FOB is for sea/inland waterway; FCA is often better for air.
Why name the port?
The named place defines where cost and risk obligations apply.
How does freight volatility affect CIF?
Seller absorbs moves unless the contract allows adjustment.
Common mistake?
Calling a price CIF without including proper freight and insurance.
Who handles export documents?
Generally the seller under both FOB and CIF.
LC and Incoterms?
Letter of credit documents must match the chosen term.
Can students use this tool?
Yes — it maps cost heads and responsibility differences clearly.
Does CIF include import duty?
No — import clearance and duties remain with the buyer.
Should margin sit in FOB or CIF?
Build profit into FOB first, then add freight and insurance for CIF.
Disclaimer: This calculator provides estimated FOB and CIF prices for educational and business planning purposes only. Actual prices depend on commercial negotiations, freight rates, insurance premiums, exchange rates, Incoterms and contractual terms.
What Is the Difference Between FOB and CIF?
FOB and CIF are Incoterms used in international trade to define responsibilities, costs and risk between the seller and buyer.
FOB Price
Under FOB, the seller generally handles the costs and responsibilities required to deliver the goods on board the vessel at the agreed port of shipment.
CIF Price
Under CIF, the seller generally arranges and pays for the cost of the goods, insurance and freight to the named destination port.
The exact responsibilities and transfer of risk depend on the applicable Incoterm and contract terms. Always confirm the agreed Incoterm and named place or port in your sales contract.
Simple formula
A simplified calculation is:
CIF Price = FOB Value + Freight + Insurance
The actual calculation can depend on the transaction, insurance method, freight quotation and contract terms.
Why Should Exporters Compare FOB and CIF Prices?
An exporter may receive a buyer enquiry asking for either an FOB or CIF quotation.
Comparing both can help you understand:
- Your actual export costs
- International freight costs
- Insurance costs
- Buyer-facing selling price
- Potential profit margin
- The impact of shipping costs on the final quotation
This is particularly useful when freight rates change significantly between destinations.
Before sending a quotation, exporters should also confirm the correct Incoterm, named place or port, currency, payment terms and other commercial conditions with the buyer.
How to Use the FOB vs CIF Calculator
- Enter your FOB value or relevant product cost.
- Enter the applicable freight cost.
- Add the applicable insurance cost.
- Review the estimated CIF value.
- Use the result when preparing your export quotation.
The calculator provides an estimate for comparison and planning. Always use the actual freight and insurance quotations applicable to your shipment when preparing a final commercial quotation.
🔗 Useful BusinessZindagi Resources
👉 How to Find International Buyers Without Visiting Trade Fairs
👉 How to Find Export Buyers Using Import-Export Data
👉 BusinessZindagi Export & Import Tools
🔎 Find Buyers Before You Export
Calculated your FOB or CIF price? The next step is finding the right international buyer.
With Volza, you can research actual import-export shipment data to discover potential buyers, suppliers, products and markets.
👉 Explore Volza Global Import-Export Data
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