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.
Estimate the cash tied up in operations, spot funding gaps, and test practical what-if scenarios.
Use the latest figures from your books. You can change them anytime.
Current Assets
Current Liabilities
Operating Cycle Assumptions
Enter totals directly, or leave blank to use the balance-sheet figures from the first tab.
Quick Ratio excludes inventory. Leave the fields blank to use the balance-sheet figures from the first tab.
See liquidity, operating-cycle and funding signals at a glance.
Test common business changes without changing your saved base figures.
Automatic observations based on your numbers.
Current Assets minus Current Liabilities. It is a balance-sheet measure of short-term liquidity.
Current Assets divided by Current Liabilities. The right level varies by industry and business model.
(Current Assets minus Inventory) divided by Current Liabilities. It focuses on assets that are generally more liquid than stock.
Inventory Days + Collection Days − Supplier Days. It estimates how long cash is tied up in the operating cycle.
Net working capital = Current Assets − Current Liabilities. It is a balance-sheet measure of short-term liquidity.
There is no single ideal ratio for every MSME. Use industry context and your own trend rather than one fixed benchmark.
It is the amount of funds your operating cycle may need to keep inventory, receivables and day-to-day operations moving after supplier credit and other funding sources are considered.
Cash Conversion Cycle = Inventory Days + Collection Days − Supplier Days. A shorter cycle generally means cash returns to the business faster.
Quick Ratio excludes inventory, so it focuses on a narrower set of current assets.
Yes. Negative net working capital means current liabilities exceed current assets; whether that is a problem depends on the business model and cash cycle.
It estimates inventory funding from COGS and inventory days, receivables from credit sales and collection days, subtracts supplier credit, then adds the selected cash buffer and seasonal buffer.
In this tool, funding gap is the estimated working-capital requirement minus your specified own funds. Gap after finance additionally subtracts your specified existing WC finance limit.
Yes. Exporters can adjust collection days, inventory days, cash buffer and funding limits to reflect longer order-to-cash cycles. Currency and trade-finance costs still need separate analysis.
No. Working capital describes funds tied up in short-term operations; cash credit is one possible financing facility used to fund those needs.
No. Use it for planning and discussion. Actual lending limits and financial assessments depend on the lender, financial statements, banking arrangements and business-specific factors.
Monthly is a useful minimum for many MSMEs, and more often when sales, inventory, credit terms or seasonality change materially.
Disclaimer: This calculator provides estimates for education and business planning. Working-capital needs, funding limits, bank assessments and industry norms vary by business. Verify decisions with your books, lender and qualified financial professional where appropriate.
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