Incoterms Cost Calculator

Compare buyer and seller cost responsibility across Incoterms.

About Incoterms Cost Calculator

Incoterms allocate cost and risk, and the two do not always transfer at the same point. Under CIF the seller pays freight but risk passes on loading, which is the most commonly misunderstood aspect. Comparing quotes across different Incoterms without normalising them is meaningless, since an EXW price and a DDP price describe entirely different scopes.

Formula

Incoterms Cost

Each Incoterm allocates a defined set of costs to the seller, with the buyer bearing the remainder

EXW: Ex works, where the buyer bears everything from the seller's premises
DDP: Delivered duty paid, where the seller bears everything including import taxes

Worked example

With the default values below, Incoterms Cost Calculator returns Buyer Total Cost of $31,800.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Value of goodsminimum 0: 25,000
Export handling and clearanceminimum 0: 600
Main carriage freightminimum 0: 2,200
Insuranceminimum 0: 200
Import duties and taxesminimum 0: 3,800
Incotermone of EXW, FOB, CFR, CIF, DAP, DDP: FOB

Results

Buyer Total Cost: $31,800.00
Costs Included in the Seller's Price: $600.00
Additional Costs Borne by the Buyer: $6,200.00
Risk Transfer Point: When goods are loaded on the vessel
Buyer Additional Costs as a Share of Goods Value: 24.80%

Step by step

1Values used
2Incoterms Cost
3Buyer Total Cost= 31,800.00
4Costs Included in the Seller's Price= 600.00
5Additional Costs Borne by the Buyer= 6,200.00
6Risk Transfer Point= When goods are loaded on the vessel
7Buyer Additional Costs as a Share of Goods Value= 24.80

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Incoterms Cost calculated?

Each Incoterm allocates a defined set of costs to the seller, with the buyer bearing the remainder Incoterms allocate cost and risk, and the two do not always transfer at the same point. Under CIF the seller pays freight but risk passes on loading, which is the most commonly misunderstood aspect.

Why does Incoterms Cost matter?

Comparing quotes across different Incoterms without normalising them is meaningless, since an EXW price and a DDP price describe entirely different scopes.

What values do I need to enter?

This calculator takes 6 inputs: Value of goods, Export handling and clearance, Main carriage freight, Insurance, Import duties and taxes, Incoterm. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.