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Cost & tax

FOB to CIF Calculator (and CIF to FOB)

Convert an FOB price into CFR and CIF, or back again, with freight and an insurance premium on 110% of CIF worked out correctly.

Direction

Price

Results update as you type.
USD
USD

Insurance

%

Rate from your insurer, e.g. 0.1–0.5% for general cargo.

%

Incoterms 2020: at least 10% (insured value 110% of CIF).

Presets

CIF price

$21,571.18

CFR $21,500.00 + premium $71.18

FOB$20,000.00
CFR$21,500.00
Insurance premium$71.180.330% of CIF
CIF$21,571.18

Price ladder

  1. FOB$20,000.00
  2. + Freight$1,500.00
  3. = CFR$21,500.00
  4. + Insurance premium0.3% × 110% CIF$71.18
  5. = CIF$21,571.18

Insured value: $23,728.30

Formula: CIF = CFR ÷ (1 − rate × (1 + uplift)), because the premium is charged on a CIF value that already contains the premium.

What the CIF price is made of

  • Goods (FOB)$20,000.0092.7%
  • Freight$1,500.007%
  • Insurance premium$71.180.3%
For containers, the recommended equivalents are FCA (instead of FOB) and CIP (instead of CIF, with Institute Cargo Clauses (A) cover).

About this calculator

FOB and CIF are the two most common ways to quote a sea export or import price. FOB (Free On Board) is the price of the goods on board the vessel at the port of loading; freight and insurance are for the buyer. CFR (Cost and Freight) adds sea freight to the port of destination. CIF (Cost, Insurance and Freight) further adds the cargo insurance the seller must buy. Buyers often ask for CIF quotes so they can compare offers, while sellers work out their cost on an FOB basis, so converting back and forth is an everyday task.

A common mistake is to calculate the insurance premium on FOB or CFR alone. Under Incoterms 2020, CIF insurance must cover at least 110% of the contract price, with at least Institute Cargo Clauses (C) cover. Because the premium is charged on the CIF value, which already contains the premium, the correct formula is CIF = CFR ÷ (1 − rate × 110%). The difference is small per shipment, but it can make the invoice, the policy and the L/C documents disagree.

This calculator works both ways. FOB → CIF adds the freight and then the insurance; CIF → FOB takes the premium and the freight off a CIF price requested by the buyer. Insurance can be a percentage (with an editable uplift) or a fixed amount from your insurer's quote. For containers, Incoterms recommends the equivalents FCA, CPT and CIP; the arithmetic is the same, only the delivery point and insurance cover differ.

Worked example

An export quote of FOB USD 20,000, sea freight USD 1,500, insurance rate 0.3% with an insured value of 110% of CIF:

  • CFR = 20,000 + 1,500 = USD 21,500
  • CIF = 21,500 ÷ (1 − 0.003 × 1.1) = 21,500 ÷ 0.9967 = USD 21,571.18
  • Premium = USD 71.18; insured value = 21,571.18 × 110% = USD 23,728.30

Worked backwards, CIF USD 21,571.18 returns exactly to FOB USD 20,000. With a fixed insurance amount of USD 5, FOB 1,000 + freight 100 becomes CIF USD 1,105.

How to use it

  1. Choose the direction

    Pick FOB → CIF to build a CIF quote, or CIF → FOB to find the FOB value behind a CIF price you were asked for.

  2. Enter price and freight

    Enter the FOB or CIF price, the currency and the sea freight to the port of destination.

  3. Set the insurance

    Enter the premium rate and uplift (10% by default, so the insured value is 110% of CIF), or choose a fixed amount.

  4. Read the price ladder

    See FOB, freight, CFR, premium, CIF and the insured value to state on the policy.

Frequently asked questions

What is the correct FOB to CIF formula?
CIF = (FOB + freight) ÷ (1 − rate × 1.1). Example: FOB USD 20,000, freight USD 1,500, rate 0.3%: CIF = 21,500 ÷ 0.9967 = USD 21,571.18, so the premium is USD 71.18.
Why is insurance based on 110% of CIF?
Incoterms 2020 requires the CIF/CIP seller to insure at least 110% of the contract price. The extra 10% stands for the profit the buyer would lose if the goods were damaged or lost.
What is the difference between CFR and CIF?
CFR = FOB + freight; CIF = CFR + insurance. Under both, risk passes to the buyer once the goods are on board at the port of loading, although the seller pays freight to destination.
How do I get FOB from a CIF price?
Take off the premium, then the freight: premium = CIF × rate × 1.1. Example CIF USD 21,571.18 at 0.3%: premium 71.18, CFR 21,500, FOB 21,500 − 1,500 = USD 20,000.
Can I use FOB and CIF for containers?
Legally yes, but the ICC recommends FCA, CPT and CIP for containers, because containers are handed over at the terminal, not on board. The cost arithmetic stays the same.

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