Marine Insurance Premium Calculator

Work out marine insurance premium instantly with clear inputs, formula shown and shareable results.

About Marine Insurance Premium Calculator

Marine cargo is insured on CIF value — cost, insurance and freight — plus a conventional imaginary profit of around 10% to cover the trader's expected margin and incidental costs. The premium rate depends on commodity, packing, voyage, conveyance and loss record.

Formulas

Insured value

Insured value = (Invoice value + Freight and charges) x (1 + Imaginary profit %)

Premium

Premium = Insured value x Premium rate %

Worked example

With the default values below, Marine Insurance Premium Calculator returns Marine premium payable of $33,110.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cargo invoice value: 8,000,000
Freight, duty and incidental charges: 600,000
Imaginary profit margin added: 10
Premium rate on insured value: 0.35

Results

Marine premium payable: $33,110.00
Insured value (CIF plus profit): $9,460,000.00
Imaginary profit added: $860,000.00
Premium as % of invoice value: 0.4139%

Step by step

1Values used
2Insured value
3Premium
4Marine premium payable= 33,110.00
5Insured value (CIF plus profit)= 9,460,000.00
6Imaginary profit added= 860,000.00
7Premium as % of invoice value= 0.4139

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

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

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why add imaginary profit?

Because a total loss deprives the trader of the margin as well as the goods. Adding 10% is the market convention and is accepted without proof.

What is the difference between ICC A, B and C?

Institute Cargo Clauses A is all-risks, B and C cover progressively narrower named perils. A is standard for most manufactured goods.