FOB vs CIF Calculator

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.

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HS Code Finder Pro

HS Code Assistant for Indian importers & exporters — indicative guidance only.

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      💡 BusinessZindagi Tip

      What is HS Code?

      The Harmonized System (HS) code is an internationally standardised product classification used for customs tariffs, trade statistics and DGFT policy. India uses the Customs Tariff aligned to HS.

      Why HS Codes Matter

      Wrong classification can mean incorrect duty, delayed clearance, penalties or denied export benefits. Always confirm with the tariff and a licensed Customs Broker (CHA).

      How to Find the Correct HS Code
      1. Describe the product precisely (material, use, form).
      2. Locate Chapter → Heading → Subheading in the Customs Tariff.
      3. Check Section/Chapter notes and GIR rules.
      4. Verify import/export policy on DGFT and GST rate notifications.
      Import vs Export Classification

      The same HS structure is used for import and export, but policy (Free / Restricted / Prohibited / STE) and documentation can differ by direction and product.

      Frequently Asked Questions

      Is this an official HS code database?

      No. It is an educational assistant with indicative matches. Final classification rests with Customs Tariff, DGFT and CBIC guidance.

      What is a likely HS code?

      A code that often applies to similar products based on description keywords — not a legal determination.

      Can GST rate differ from tariff?

      GST is notified separately; always cross-check GST rate schedules for your HSN.

      Who should confirm classification?

      A qualified Customs Broker (CHA) or your compliance team using the official tariff and notifications.

      Why do tea grades have different codes?

      Form and processing (e.g. black tea, green tea, extracts) can fall under different headings.

      Related Tools

      Import Landed Cost Calculator Export Profit Calculator FOB vs CIF Calculator Container Calculator MSME Scheme Checker

      Disclaimer: This tool provides indicative guidance only. Final classification should be confirmed using the Customs Tariff, DGFT notifications, CBIC guidance or a qualified Customs Broker.

      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

      1. Enter your FOB value or relevant product cost.
      2. Enter the applicable freight cost.
      3. Add the applicable insurance cost.
      4. Review the estimated CIF value.
      5. 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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