Incoterms Risk & Cost Calculator — EXW vs FOB vs CIF vs DDP

Calculate cost and risk allocation under different Incoterms. Compare EXW, FOB, CIF, and DDP — find which Incoterm puts the right costs and risks with the right party.

Quick answer: DDP (Delivered Duty Paid) puts all costs and risk on seller — buyer has maximum convenience. EXW puts all costs and risk on buyer. FOB is the most common: seller covers to port of export, buyer takes risk at ship's rail.

🌐 Incoterms Risk & Cost Allocation Calculator

Cargo Value ($)

Incoterm

Origin Inland Transport ($)

Factory to port of export

Export Clearance & Port Fees ($)

Ocean / Main Freight ($)

Cargo Insurance ($)

Import Clearance & Duty ($)

Destination Inland Transport ($)

Risk Transfer Point

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Seller's Cost Obligation

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Buyer's Cost Obligation

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How to Use This Calculator

Enter all transaction costs — origin inland, export clearance, ocean freight, insurance, import duty+clearance, destination inland.
Select Incoterm — the calculator splits costs between buyer and seller according to the chosen Incoterm.
Compare Incoterms — run the calculator for different Incoterms to see how cost and risk allocation changes — the total cost is the same, only who pays changes.

Worked Example

$80K cargo. Origin inland $850, export $380, ocean $3,200, insurance $120, import+duty $4,800, destination $650. Comparing FOB vs DDP.

FOB seller pays: $850 + $380 = $1,230
FOB buyer pays: $3,200 + $120 + $4,800 + $650 = $8,770
DDP seller pays: $10,000 (everything)
DDP buyer pays: $0

Under DDP, the seller handles everything — convenient for the buyer but the seller takes all risk. Under FOB, the buyer manages ocean logistics and import — giving them control and often lower cost if they have better freight rates than the seller.

Frequently Asked Questions

For experienced importers with established freight forwarders: FOB or FCA — you control your own shipping rates and insurance. For small importers or one-off purchases: CIF gives you simpler pricing (seller handles shipping and insurance). Avoid DDP if buying from China — sellers often inflate prices significantly and you lose visibility into actual freight and duty costs.

FOB risk transfers when goods are loaded on the vessel at the port of origin. FCA risk transfers to the carrier named by the buyer (typically at origin inland or at the port before loading). For containerised cargo, FCA is technically preferred over FOB under Incoterms 2020 because container loading risk is murkier than break-bulk cargo.