FOB/CIF Trade Terms Converter

Convert between FOB (Free On Board) and CIF (Cost, Insurance, Freight) values. Calculate freight and insurance costs for international shipping. Enter your own rates. This tool processes all data locally in your browser. No information is ever sent to any server. Completely free, no registration required.

How to Use the FOB/CIF Trade Terms Converter

1. Enter your input values above
2. Results update automatically
3. Copy or download the output

What is a FOB/CIF Trade Terms Converter?

A FOB/CIF Converter translates between the two most common international shipping terms (Incoterms): FOB (Free On Board — seller pays until goods are on the ship) and CIF (Cost, Insurance, Freight — seller pays until goods arrive at the destination port). FOB and CIF are the foundation of international trade pricing: a Chinese supplier quoting 'FOB Shanghai $10,000' is selling for $10K delivered to the Shanghai port. The buyer pays everything after. A CIF quote includes ocean freight and insurance to the destination. This converter instantly translates between them.

How Does It Work?

Enter the FOB price to convert to CIF, or CIF to FOB. Add freight cost (ocean or air), insurance rate (typically 0.1-0.3% of cargo value), and any additional origin charges. The converter computes: CIF = FOB + Freight + Insurance. Insurance = CIF × 110% × Insurance Rate (standard practice: insure 110% of CIF to cover incidental costs). Reverse: FOB = CIF − Freight − Insurance.

Formula

FOB = cost of goods + all charges to load onto vessel at origin port\n\nInsurance = CIF × 110% × Insurance Rate%\n(standard: 110% of CIF value to cover overhead in case of loss)\n\nCIF = FOB + Ocean Freight + Insurance\n\nReverse:\nFOB = CIF − Ocean Freight − Insurance\n\nCFR (Cost & Freight) = FOB + Freight (no insurance) — CIF without the I\n\nIncoterms 2020 Key Points:\n• FOB: Seller loads goods on vessel → Risk transfers to buyer at ship's rail\n• CIF: Seller pays freight + insurance to destination port → Risk transfers at destination (cost), but loading (risk) transfers at origin\n\nTypical Ocean Freight (2026, 40ft container):\nAsia → US West Coast: $1,800-$3,000\nAsia → US East Coast: $3,200-$5,500\nAsia → Europe: $2,000-$4,000

Who Uses This Tool?

• Importers comparing supplier quotes given in different Incoterms
• Customs brokers calculating dutiable value for import declarations
• E-commerce sellers comparing sourcing from different countries
• Freight forwarders providing shipping cost estimates to clients
• International trade students learning Incoterms and shipping cost structures

Pro Tips

• FOB is the most common Incoterm for containerized ocean freight. CIF gives the buyer less control over freight — the seller chooses the shipping line and insurance
• Customs duties are calculated on CIF value, not FOB. Using FOB for customs valuation is a common and costly mistake that triggers audits
• Always specify the named port with the Incoterm: 'FOB Shanghai' or 'CIF Los Angeles' — without the port, the term is incomplete
• For small shipments (<1 cubic meter, LCL — less than container load), freight is charged by volume or weight, whichever is higher (the 'chargeable weight')

Frequently Asked Questions about FOB/CIF Trade Terms Converter

Should I buy FOB or CIF?

FOB gives you (the buyer) control: you choose the shipping company, negotiate freight rates, and arrange insurance. CIF is simpler but gives the seller control. Experienced importers usually prefer FOB. New importers may prefer CIF for simplicity.

What Incoterm is best for small businesses importing from China?

FOB is generally recommended — you control the freight and can negotiate better rates. However, for very small shipments or your first import, CIF may be simpler. Never use EXW (Ex Works) for international shipments unless you're very experienced.

Free online FOB/CIF Trade Terms Converter — no signup, 100% client-side processing. All data stays in your browser.