MRKCAL Store Utility
FOB vs CIF Calculator
Compare FOB and CIF landed cost assumptions.
Use this result
Compare two sourcing offers on the same commercial basis. FOB normally leaves the buyer to arrange main carriage, while CIF includes seller-arranged freight and minimum marine insurance to the named destination port. The comparison should expose destination charges and control of the freight booking instead of treating CIF as an all-inclusive landed price.
Worked example
A supplier offers FOB Shanghai at USD 18,400. A CIF Long Beach offer is USD 20,250. Add the buyer-arranged ocean freight and insurance to the FOB option, then list destination handling, customs, duty, and delivery separately for both options. The lower headline offer may not be the lower delivered cost.
Check before using the result
Do not compare different quantities, specifications, currencies, ports, or quote dates. Do not assume CIF includes import duty, destination terminal charges, customs brokerage, or delivery to your warehouse. Record who selects the forwarder and who receives freight documents.
What this tool does not establish
This estimate cannot predict current carrier space, destination fees, customs treatment, or insurance claims. Request written breakdowns from the supplier and forwarder before choosing the Incoterm.
Questions about this task
Is CIF the same as landed cost?
No. CIF covers cost, insurance, and freight to the named port under the Incoterm; destination and import costs can still remain with the buyer.
When can FOB provide more control?
FOB can give the buyer more control over the main freight booking and forwarder relationship, provided the buyer can manage those responsibilities.
Should I choose only by the lowest total?
No. Also compare freight control, document visibility, insurance scope, schedule reliability, and destination charge exposure.
Related tools for the next step
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