Incoterms Cost Calculator — Who Pays What Under Each Term

Compare total landed cost under different Incoterms. See exactly which costs fall on the buyer vs seller under EXW, FCA, FOB, CIF, CPT, CIP, DAP, DDP, and more.

Quick answer: EXW: buyer pays everything. DDP: seller pays everything including import duty. FOB: seller to origin port; buyer takes over from there. CIF: seller also pays freight and insurance to destination port.

🌐 Incoterms Cost Calculator

Trucking to origin port/airport
Total Landed Cost
Seller's Obligation
Buyer's Additional Cost

How to Use This Calculator

  1. Enter all cost components — from origin to your warehouse — product cost plus all logistics and customs charges.
  2. Select your Incoterm — the term agreed in your purchase order or sales contract.
  3. Review buyer vs seller obligations — to confirm who is responsible for each cost element.

Worked Example

$20,000 product. $350 origin transport, $150 export, $2,800 freight, $180 insurance, $1,500 duty, $650 delivery. Comparing FOB vs DDP.

  1. FOB seller pays: product + $350 + $150 = $20,500. Buyer pays: $2,800 + $180 + $1,500 + $650 = $5,130
  2. DDP seller pays: everything = $25,630. Buyer pays: $0

Under DDP, the seller builds all logistics costs into their price. Under FOB, the buyer controls logistics and can optimize freight costs independently.

Frequently Asked Questions

FOB (Free On Board) is the most commonly used Incoterm in ocean freight, especially from China. CIF (Cost Insurance Freight) is also widely used. DDP is preferred by buyers who want simplicity. FCA is technically preferred over FOB for containerized cargo (risk transfers more cleanly) but FOB remains dominant in practice.

Under DDP, the seller is responsible for import clearance and duty in the buyer's country. Many Chinese suppliers offer DDP pricing but cannot legally act as importer of record in the US. This can cause delays, compliance issues, and potential CBP problems. Have your customs broker review DDP arrangements carefully.