Incoterms Cost & Landed Freight Calculator
Calculate total landed cost and analyze exact buyer versus seller financial responsibilities across ICC Incoterms 2020 rules (EXW, FCA, FOB, CFR, CIF, DAP, DPU, DDP). Audit origin handling, main transit freight, insurance, and destination tariffs with real-time risk allocation.
- • EXW (Ex Works): Buyer assumes 100% of origin, freight, and duty costs.
- • FOB (Free on Board): Seller pays origin & loading; Buyer pays main freight.
- • CIF (Cost, Insurance, Freight): Seller pays origin, main transit & insurance.
- • DDP (Delivered Duty Paid): Seller pays 100% of costs including import duty.
1. Select Target Incoterms® 2020 Rule
2. Landed Cost Breakdown Parameters
Technical Guide to Incoterms® 2020 Cost & Liability Split
International Commercial Terms (Incoterms®) defined by the International Chamber of Commerce (ICC) dictate the precise distribution of transportation costs, insurance obligations, and operational risk transfer between buyers and sellers in cross-border trade.
Risk Transfer vs. Cost Allocation Boundaries
A critical distinction under Incoterms 2020 (such as C-terms like CPT or CIP) is that cost responsibility and physical risk transfer occur at different geographic points. Under CPT and CIP, the seller fulfills their risk obligation once goods are handed to the first carrier at origin, even though the seller pays for transportation to the named destination.
Frequently Asked Questions
Q: What is the primary difference between FOB and CIF under Incoterms 2020?
Under FOB (Free on Board), the seller pays origin costs until goods are loaded on board; the buyer pays main ocean freight and transit insurance. Under CIF (Cost, Insurance & Freight), the seller pays main ocean freight and cargo insurance to the destination port.
Q: Who pays import customs duty under DDP vs DAP?
Under DDP (Delivered Duty Paid), the seller is responsible for paying import clearance, taxes, and duties. Under DAP (Delivered at Place), the buyer is strictly responsible for destination customs clearance and duty payments.