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.
MSME Scheme Eligibility Checker Pro
Discover Government schemes that may suit your business — guidance only, not official eligibility.
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What is MSME Scheme Eligibility Checker?
An educational tool that maps your business profile to popular Central Government schemes for MSMEs, startups and exporters. It suggests schemes you may be eligible for — it is not an official Government checker.
How It Works
Answer eight short questions about type, stage, entity, investment, loan need, location, special category and export interest. The tool scores readiness and lists schemes that often align with similar profiles.
Frequently Asked Questions
Is this an official Government tool?
No. It provides general guidance only. Final eligibility is decided by the concerned ministry, bank or implementing agency.
What is PMEGP?
Prime Minister’s Employment Generation Programme supports new micro enterprises with margin money subsidy through KVIC/KVIB/DIC.
What is Mudra Loan?
Loans under PMMY for non-farm micro enterprises — Shishu, Kishore and Tarun categories up to ₹10 lakh (limits may be revised).
Do I need Udyam registration?
Udyam is strongly recommended for most MSME benefits and is free online.
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Yes. Startup India and related benefits may appear if your profile matches.
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Disclaimer: This tool provides general guidance only. Actual eligibility depends upon official Government notifications and scheme guidelines.
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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