MerchAsst logo MerchAsst
Free Trade Tool

Incoterms Calculator

Understand and compare all 11 Incoterms (EXW, FCA, FOB, CIF, DDP, etc.) with an interactive cost model. See exactly which costs and responsibilities fall on the seller versus buyer for each international trade term.

11 Incoterms Explained 100% Free FOB/CIF/DDP Cost Model Real-time Comparison
Incoterm Group

Group E — Departure

Seller bears minimal risk

Cost Inputs (USD)

$
$
$
$
$
$
$

Cost Breakdown

Selected Incoterm
EXW
Total Shipment Value
$0.00
Seller Pays
$0.00
Buyer Pays
$0.00
Cost Distribution
Seller
$0.00
Seller: 50% Buyer: 50%
Quick Compare: FOB vs CIF vs DDP
Incoterms Reference

All 11 Incoterms at a Glance

Complete reference table showing seller and buyer responsibilities for every Incoterm 2020 term.

Code Full Name Category Seller's Responsibility Buyer's Responsibility
How It Works

Calculate Incoterms Costs in 3 Steps

See how costs and responsibilities shift between seller and buyer as you move through the Incoterms groups.

1

Pick an Incoterm

Select the trade term your quotation uses — from EXW (seller's factory) to DDP (delivered duty paid). Each term defines exactly where the seller's obligation ends.

2

Enter Your Costs

Input real-world costs for product, inland transport, export clearance, main carriage, insurance, import clearance, and final delivery. The calculator allocates them automatically.

3

Compare & Decide

See the total cost burden for both seller and buyer, compare FOB/CIF/DDP side by side, and choose the Incoterm that matches your risk tolerance and pricing strategy.

Benefits

Why Use an Incoterms Calculator

Avoid costly misunderstandings and negotiate better terms with full cost transparency.

Clear Responsibility

Know exactly who pays for each cost component — from factory pickup to final delivery. No more ambiguous "shipping included" conversations.

Cost Transparency

Visual breakdown shows seller and buyer costs side by side. Compare EXW vs FOB vs CIF vs DDP to see the true landed cost impact of each term.

Risk Management

Understand where the risk of loss or damage transfers from seller to buyer. Higher Incoterms (D-group) mean higher seller liability — price accordingly.

Compliance

Ensure your contracts use the correct Incoterm 2020 terminology. Avoid disputes by aligning purchase orders, invoices, and shipping documents with the right term.

Tips

Incoterms Best Practices

Smart Incoterms selection saves money, reduces disputes, and builds trust with your trading partners.

Use FOB for Sea Freight

FOB is the most common term for container shipping. It gives the buyer control over freight and insurance, often resulting in better rates than CIF when the buyer has volume discounts.

Choose CIF When Buyer Wants Simplicity

CIF bundles freight and insurance into the seller's quote, making it easier for buyers who prefer one-stop pricing. Just be aware you pay a markup for the convenience.

DDP for E-commerce & Small Orders

DDP is ideal for e-commerce and low-value shipments where buyers want doorstep delivery with no customs hassle. Sellers charge a premium but win customer convenience.

Always Include Insurance for CIF/CIP

Under CIF and CIP rules, the seller must purchase insurance. Don't skip or underinsure — cargo claims are common and the policy must be in the buyer's name for the full invoice value plus 10%.

FAQ

Frequently Asked Questions

Everything you need to know about Incoterms and how to use this calculator.

Incoterms (International Commercial Terms) are a set of 11 standardized rules published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyers and sellers in international trade. They eliminate ambiguity by clearly stating who pays for transportation, insurance, customs clearance, and delivery at each stage of the shipment. Using the correct Incoterm prevents costly disputes and ensures both parties understand their obligations.
FOB (Free On Board) — Seller loads the goods onto the ship; buyer pays for freight, insurance, and all costs from the port of destination. CIF (Cost, Insurance & Freight) — Seller pays for freight and insurance to the destination port; buyer handles import clearance and delivery. DDP (Delivered Duty Paid) — Seller bears ALL costs and risks to deliver the goods at the buyer's doorstep, including import duties and clearance. DDP gives the buyer the simplest experience but shifts maximum cost and risk to the seller.
It depends on your risk tolerance and pricing model. EXW/FCA are best when you want the buyer to handle all logistics. FOB/CFR/CIF work well for traditional sea freight where you want to control carriage. CPT/CIP are better for multimodal transport (truck + train + ship). DAP/DPU/DDP are ideal when you offer "delivered" pricing to simplify the buyer's experience. Most e-commerce sellers use DDP for small parcels and FOB for bulk containers.
Yes. Incoterms 2020 is the current version, replacing Incoterms 2010. The main changes: DAT (Delivered at Terminal) was renamed to DPU (Delivered at Place Unloaded), FCA now allows bills of lading to be issued after loading, and security-related costs are now explicitly allocated. All 11 terms (EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP) remain the same — just updated definitions.
Under both CIF (sea freight) and CIP (any mode), the seller is obligated to purchase insurance. The ICC recommends minimum cover of 110% of the invoice value (100% + 10%), in the name of the buyer, transferable, and covering the full transport journey. The insurance document must be delivered to the buyer along with other shipping documents so they can claim directly if cargo is damaged or lost.
Yes. The Incoterms Calculator is 100% free, requires no sign-up, and runs entirely in your browser. All calculations happen locally using JavaScript — your cost data is never sent to any server. Use it as often as you need for quoting, purchasing, or trade compliance training.
Copied!