Calculate your total manufacturing cost, cost per unit, selling price and expected profit before you price your product.
FOB vs CIF Price Calculator
Build your FOB price, add freight and insurance, and see your CIF quote in seconds.
Enter your export costs
Fill the FOB and CIF inputs, then calculate. The results panel will show the price difference, freight/insurance share and unit economics.
Use the table below to see which party typically handles major cost and logistics activities under FOB and CIF.
Answer these practical questions. The tool will show the factors behind its result — you remain in control of the final Incoterm choice.
Your export price
Buyer vs Seller Responsibilities
| 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.
FOB Cost Breakdown
FOB vs CIF Price
💡 Smart Insights
🔮 What-If Analysis
What is FOB?
Free On Board — seller delivers goods on board at the named port of shipment. Buyer arranges and pays main carriage and insurance.
What is CIF?
Cost, Insurance and Freight — seller pays cost, minimum insurance and freight to the named destination port. Risk still transfers on loading at origin.
When to Choose FOB
Buyer has better freight rates, seller wants less logistics responsibility, or buyer insists on controlling the carrier.
When to Choose CIF
Buyer wants a simpler all-in price to destination port, or seller has competitive freight rates.
Frequently Asked Questions
What does FOB mean?
Free On Board — seller delivery point is on board the vessel at the origin port.
What does CIF mean?
Cost, Insurance and Freight to the named destination port, paid by the seller.
Does CIF mean seller bears risk until destination?
No. Risk typically transfers on loading at origin.
How is FOB price built?
Product + packing + inland + export clearance + loading + desired profit.
How is CIF price built?
FOB price + main freight + insurance.
Who pays freight under FOB?
The buyer.
Who pays freight under CIF?
The seller (included in CIF price).
Which is better for exporters?
Depends on freight competitiveness and buyer preference.
Can I quote both FOB and CIF?
Yes — many exporters offer both options.
Is CIF insurance full cover?
Standard CIF is minimum cover; buyer may buy more.
Do Incoterms replace the contract?
No — they allocate cost and risk points.
FOB for air freight?
FOB is for sea/inland waterway; FCA is often better for air.
Why name the port?
The named place defines where cost and risk obligations apply.
How does freight volatility affect CIF?
Seller absorbs moves unless the contract allows adjustment.
Common mistake?
Calling a price CIF without including proper freight and insurance.
Who handles export documents?
Generally the seller under both FOB and CIF.
LC and Incoterms?
Letter of credit documents must match the chosen term.
Can students use this tool?
Yes — it maps cost heads and responsibility differences clearly.
Does CIF include import duty?
No — import clearance and duties remain with the buyer.
Should margin sit in FOB or CIF?
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.
Calculate the true cost of making your product with this free Manufacturing Cost Calculator. Add raw materials, packaging, labour, electricity, rent, depreciation and other production expenses to calculate your total manufacturing cost, cost per unit, recommended selling price, GST and expected profit.
Ideal for MSMEs, manufacturers, startups, traders and small businesses that want to price products accurately and avoid underpricing.
How to Calculate Manufacturing Cost
Manufacturing cost is the total cost required to produce a product. It generally includes raw materials, direct labour and manufacturing overheads such as electricity, factory rent, depreciation, repairs and quality control.
The basic formula is:
Total Manufacturing Cost = Material Cost + Labour Cost + Manufacturing Overheads
To calculate the manufacturing cost per unit:
Cost Per Unit = Total Manufacturing Cost ÷ Production Quantity
Once you know your cost per unit, you can add your desired profit margin and applicable GST to determine a suitable selling price.
This helps manufacturers and MSMEs avoid one of the most common pricing mistakes: calculating the selling price only from raw material cost while ignoring labour and overhead expenses.
Why Use a Manufacturing Cost Calculator?
Many businesses calculate product prices by looking only at raw material costs. This can result in underpricing and lower-than-expected profits.
This calculator helps you include:
- Raw material and packaging costs
- Direct and indirect labour
- Electricity and factory expenses
- Rent, depreciation and repairs
- Quality control and insurance
- Production quantity
- Cost per unit
- Desired profit margin
- GST
- Selling price
- Expected profit
You can also use the What-If Analysis to see how changes in material or labour costs could affect your product profitability.
Frequently Asked Questions
What is a manufacturing cost calculator?
A manufacturing cost calculator helps businesses calculate the total cost of producing a product by combining material, labour and production overhead costs.
How do I calculate manufacturing cost per unit?
Divide the total manufacturing cost by the number of units produced.
Cost Per Unit = Total Manufacturing Cost ÷ Production Quantity
How do I calculate a product selling price?
Start with the manufacturing cost per unit, add your desired profit margin and then add applicable GST if you are quoting a tax-inclusive price.
Can MSMEs use this calculator?
Yes. The calculator is designed for quick manufacturing cost and pricing estimates for MSMEs, startups, manufacturers and small businesses.
Can I see what happens if raw material prices increase?
Yes. The What-If Analysis lets you test increases in material and labour costs and see their potential impact on your manufacturing cost and profitability.
Related Business Tools
Want to check your pricing and costs from different angles? Try these free BusinessZindagi tools:
- Profit Margin Calculator — calculate profit, margin, markup and selling price.
- Raw Material Price Increase Calculator — see how supplier price increases affect your product cost and margin.
- GST Calculator — calculate GST-inclusive and GST-exclusive prices.
- CostTrack — track your business expenses and understand where your money is going.
- Export Profit Calculator — calculate export costs, selling price and estimated export profit.
Disclaimer
This calculator provides estimates for business planning and educational purposes only. Results depend on the costs, quantities, taxes, margins and other information entered by the user. Actual manufacturing costs, selling prices and profits may vary based on supplier prices, production conditions, wastage, taxes, market prices and other business expenses.
BusinessZindagi does not guarantee the accuracy or profitability of any calculation. Always verify important figures with your actual invoices, quotations, accounting records and professional adviser before making financial or pricing decisions.