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 How Much Working Capital Your Business Really Needs
Free ToolCurrent Assets
Current Liabilities
Uses Current Assets and Current Liabilities from the Working Capital tab. Fill those values first, or enter totals below.
Quick Ratio excludes inventory. Uses assets/liabilities from Working Capital tab when available.
See how sales growth or inventory/debtor changes affect working capital need.
Working capital is the money available for day-to-day operations: Current Assets minus Current Liabilities. Positive WC means you can cover short-term obligations.
Current Assets ÷ Current Liabilities. A ratio around 1.5–2.0 is often considered healthy for many MSMEs, but ideal levels vary by industry.
(Current Assets − Inventory) ÷ Current Liabilities. Measures ability to pay short-term debts without selling stock.
Days Inventory + Days Receivable − Days Payable. Shorter cycles mean cash returns faster to the business.
Net working capital = Current Assets − Current Liabilities. It shows short-term liquidity available for operations.
Often 1.5 to 2.0 is comfortable, but trading firms may run leaner and manufacturers may need higher coverage.
Because inventory is excluded. Inventory may not convert to cash quickly.
Based on operating cycle: funds tied in inventory and receivables, minus credit from suppliers, scaled to your sales and expenses.
Time (in days) between paying for inputs and collecting cash from customers.
Yes. It means current liabilities exceed current assets — a liquidity risk that needs attention.
No. Excess or slow-moving stock locks cash and weakens the quick ratio.
Factor longer shipment and collection cycles, currency risk, and packing credit / export finance products.
Cash credit is a financing facility often used to fund working capital needs; WC itself is a balance-sheet measure.
At least monthly, and whenever sales, credit terms, or inventory policy change.
It varies widely by industry. Track your own trend rather than a single benchmark.
Longer payable periods reduce WC need, but must stay within supplier relationships and discounts lost.
Inventory days + receivable days — how long cash is tied in operations before collection.
No. Use it for planning and education; consult professionals for financing and compliance decisions.
Peak seasons often need higher inventory and receivables funding — plan facilities in advance.
Disclaimer: This calculator provides estimated values for educational and business planning purposes only. Actual working capital requirements depend on your business model, industry, operating cycle and financial policies.
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