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.
Compare FOB and CIF Prices Instantly — costs, responsibilities and profitability.
Free ToolUses 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.
| 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.
Free On Board — seller delivers goods on board at the named port of shipment. Buyer arranges and pays main carriage and insurance.
Cost, Insurance and Freight — seller pays cost, minimum insurance and freight to the named destination port. Risk still transfers on loading at origin.
Buyer has better freight rates, seller wants less logistics responsibility, or buyer insists on controlling the carrier.
Buyer wants a simpler all-in price to destination port, or seller has competitive freight rates.
Free On Board — seller delivery point is on board the vessel at the origin port.
Cost, Insurance and Freight to the named destination port, paid by the seller.
No. Risk typically transfers on loading at origin.
Product + packing + inland + export clearance + loading + desired profit.
FOB price + main freight + insurance.
The buyer.
The seller (included in CIF price).
Depends on freight competitiveness and buyer preference.
Yes — many exporters offer both options.
Standard CIF is minimum cover; buyer may buy more.
No — they allocate cost and risk points.
FOB is for sea/inland waterway; FCA is often better for air.
The named place defines where cost and risk obligations apply.
Seller absorbs moves unless the contract allows adjustment.
Calling a price CIF without including proper freight and insurance.
Generally the seller under both FOB and CIF.
Letter of credit documents must match the chosen term.
Yes — it maps cost heads and responsibility differences clearly.
No — import clearance and duties remain with the buyer.
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.
FOB and CIF are Incoterms used in international trade to define responsibilities, costs and risk between the seller and buyer.
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.
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.
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.
An exporter may receive a buyer enquiry asking for either an FOB or CIF quotation.
Comparing both can help you understand:
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.
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.
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