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.
Import Landed Cost Calculator Pro
Know Your Actual Import Cost Before You Import
Free ToolInputs
Product & Quantity
Tell us what you are importing and how it is measured.
Product Pricing
Choose how your supplier has quoted the product price.
1,000 Pieces · Total invoice value
Supplier & Currency
Set the supplier location and invoice currency.
Assessable value ≈ product (INR) + freight + insurance. Duties are estimates for planning.
Synced with Product Cost tab rate when you calculate.
Full landed cost uses all tabs. Click Calculate.
Results
Profit Planner
Cost Breakdown
| Component | Amount | Percentage of Total Cost |
|---|---|---|
| Total | — | 100% |
Cost Distribution
Cost Distribution Bars
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💡 Smart Import Insights
🔮 What-If Analysis
Import Checklist
- ✔ IEC
- ✔ GST
- ✔ AD Code
- ✔ Correct HS Code
- ✔ Freight Finalised
- ✔ Marine Insurance
- ✔ Customs Broker
- ✔ Import License if applicable
- ✔ Product Compliance Checked
Educational checklist — actual requirements vary by product and country. Printable with the report.
What is Import Landed Cost?
Import landed cost is the total cost of bringing goods from an overseas supplier into your warehouse in India. It includes product value, ocean or air freight, marine insurance, basic customs duty, social welfare surcharge, IGST, compensation cess (if any), CHA charges, port and CFS charges, handling, inland transport, warehousing and other local charges.
Formula
Landed Cost = Product (INR) + Freight + Insurance + BCD + SWS + IGST + Cess + CHA + Port + CFS + Handling + Inland Transport + Warehousing + Other Charges.
Assessable Value (approx. CIF) = Product (INR) + Freight + Insurance. BCD is charged on assessable value; SWS on BCD; IGST on (assessable + duties).
How to Calculate
- Convert foreign currency invoice value to INR using the exchange rate.
- Add freight and insurance to get approximate CIF / assessable value.
- Apply BCD %, then SWS % on BCD, then IGST % on (assessable + duties).
- Add all local charges (CHA, port, CFS, handling, transport, warehouse, bank, docs, others).
- Divide grand total by quantity for landed cost per unit.
Worked Example
Product USD 10,000 × ₹83.50 = ₹8,35,000. Ocean freight ₹75,000 + insurance ₹8,000 → CIF ≈ ₹9,18,000. BCD 10% ≈ ₹91,800; SWS 10% of BCD ≈ ₹9,180; IGST 18% on (CIF + BCD + SWS) ≈ ₹1,83,416. Add local charges (e.g. ₹68,000). Grand total landed cost is the sum of all components; divide by units for per-unit cost.
What is Landed Cost?
Total cost to get goods into your warehouse: product, freight, insurance, duties, taxes and local charges.
Basic Customs Duty
BCD is charged on assessable value. Rates depend on HS code. Always verify the applicable tariff.
IGST on Imports
IGST is typically levied on (assessable value + BCD + SWS + other duties). Input credit may be available subject to law.
Common Mistakes
Comparing only FOB price, ignoring local charges, wrong HS code duty, and weak FX assumptions.
📌 Import Tips
- Calculate landed cost before placing the order.
- Compare suppliers on total landed cost, not only product price.
- Monitor exchange rates; consider forward cover for large orders.
- Negotiate freight separately and get multiple quotes.
Frequently Asked Questions
What is import landed cost?
All costs to bring goods to your location: product, logistics, duty, tax and clearance charges.
How is assessable value estimated?
Often CIF value in INR (product + freight + insurance). Customs may assess differently.
What is BCD?
Basic Customs Duty under the Customs Tariff based on HS classification.
What is Social Welfare Surcharge?
Typically a percentage of BCD (commonly 10% of BCD where applicable).
How is IGST on imports calculated?
Usually on assessable value plus customs duties. Confirm current notifications for your goods.
Is IGST always a cost?
Registered businesses may claim ITC subject to eligibility; cash flow timing still matters.
Ocean vs air freight?
Air is faster and costlier; use for high-value or urgent cargo.
Why include bank charges?
LC, TT and negotiation fees add to true import cost.
Does country of origin change duty?
Preferential rates may apply under FTAs with valid origin proof.
What is compensation cess?
Additional levy on certain goods; not always applicable.
How do I get accurate duty rates?
Use HS code, tariff, notifications and a licensed customs broker.
Can this replace a broker?
No — it is a planning tool. Final assessment is by Customs.
How does FX affect landed cost?
A weaker INR raises INR cost of the same FC invoice.
Should I add demurrage?
If likely, include under other charges for a safer estimate.
What is cost per unit used for?
Pricing, margins and comparing alternate suppliers or modes.
How to reduce import cost?
Negotiate FOB, consolidate shipments, right-size mode, verify HS code, manage FX.
Is insurance mandatory?
Not always, but recommended; CIF includes minimum cover from seller.
What documents are essential?
Invoice, packing list, transport document, and often insurance and COO.
First-time importer tips?
Get IEC, open AD code, work with a broker, and cost the full landed picture first.
Why is my duty higher than expected?
Wrong HS code, exemptions not claimed, or assessable value higher than planned.
Related Tools
Need Verified Overseas Suppliers?
Research supplier shipment history before importing.
Disclaimer: This calculator provides estimated values only. Actual import duties, taxes and charges depend upon HS Code classification, customs valuation, government notifications and applicable exemptions.
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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