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.
Know Your Actual Import Cost Before You Import
Free ToolTell us what you are importing and how it is measured.
Choose how your supplier has quoted the product price.
1,000 Pieces · Total invoice value
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.
| Component | Amount | Percentage of Total Cost |
|---|---|---|
| Total | — | 100% |
Educational checklist — actual requirements vary by product and country. Printable with the report.
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.
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).
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.
Total cost to get goods into your warehouse: product, freight, insurance, duties, taxes and local charges.
BCD is charged on assessable value. Rates depend on HS code. Always verify the applicable tariff.
IGST is typically levied on (assessable value + BCD + SWS + other duties). Input credit may be available subject to law.
Comparing only FOB price, ignoring local charges, wrong HS code duty, and weak FX assumptions.
All costs to bring goods to your location: product, logistics, duty, tax and clearance charges.
Often CIF value in INR (product + freight + insurance). Customs may assess differently.
Basic Customs Duty under the Customs Tariff based on HS classification.
Typically a percentage of BCD (commonly 10% of BCD where applicable).
Usually on assessable value plus customs duties. Confirm current notifications for your goods.
Registered businesses may claim ITC subject to eligibility; cash flow timing still matters.
Air is faster and costlier; use for high-value or urgent cargo.
LC, TT and negotiation fees add to true import cost.
Preferential rates may apply under FTAs with valid origin proof.
Additional levy on certain goods; not always applicable.
Use HS code, tariff, notifications and a licensed customs broker.
No — it is a planning tool. Final assessment is by Customs.
A weaker INR raises INR cost of the same FC invoice.
If likely, include under other charges for a safer estimate.
Pricing, margins and comparing alternate suppliers or modes.
Negotiate FOB, consolidate shipments, right-size mode, verify HS code, manage FX.
Not always, but recommended; CIF includes minimum cover from seller.
Invoice, packing list, transport document, and often insurance and COO.
Get IEC, open AD code, work with a broker, and cost the full landed picture first.
Wrong HS code, exemptions not claimed, or assessable value higher than planned.
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.
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.
👉 How to Find International Buyers Without Visiting Trade Fairs
👉 How to Find Export Buyers Using Import-Export Data
👉 BusinessZindagi Export & Import Tools
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
BusinessZindagi Tip: Search by your product or