Quick answer
How is FOB calculated?
FOB = ex-factory price + inland transport to port + export clearance and documentation. It includes your profit and any commission paid out of the price.
FOB = (Product cost × (1 + Profit%) + Inland + Docs/pc) ÷ (1 − Commission%)
How it works
FOB Calculator — Export Price Builder
Build your full export price ladder — EXW → FOB → CFR → CIF → landed — with profit, commission, freight, insurance and duty, in your currency and the buyer's.
Profit is added to product cost, inland transport and documentation are added to reach the port, and the price is grossed up for commission to give FOB. Freight gives CFR, insurance gives CIF, and the buyer's duty and charges give landed cost. Every figure is also shown in the buyer's currency at your exchange rate.
Formula
The formula, in full
- FOB
- (Product cost × (1 + Profit%) + Inland + Docs/pc) ÷ (1 − Commission%)
- EXW
- FOB − Inland − Docs/pc
- CFR
- FOB + Freight
- Insurance
- CFR × (1 + Uplift%) × Insurance rate
- CIF
- CFR + Insurance
- Landed
- CIF + CIF × Duty% + Destination charges
- Buyer currency
- Price ÷ Exchange rate
Example
Woven shirt to the USA
- 01Product cost = ₹439 → + 12% profit = ₹491.68
- 02+ inland ₹6 + docs ₹3.50 = ₹501.18 → ÷ 0.95 = FOB ₹527.56 ($6.32)
- 03CFR = ₹545.56 → insurance ₹1.80 → CIF ₹547.36
- 04Landed = 547.36 × 1.20 + 8 = ₹664.83
Use “Load Example” above to run this example in the calculator.
Industry tip
Industry tip
“Quote FOB and let the buyer nominate the forwarder whenever possible — it removes freight-rate risk from your margin.”
Assumptions
What this calculator assumes
- Profit is calculated on manufacturing + packaging cost.
- Commission is a percentage of the FOB price.
- Insurance is calculated on CFR value plus the uplift you enter.
- Duty is applied to CIF value. Many countries use different valuation bases — use your own rate.
- Exchange rate is entered manually; no live rates are fetched.
- All duty, tax, freight and exchange rates are entered by you. Results are estimates, not legal or tax advice — confirm rates with your customs broker, forwarder and bank.
FAQ
Frequently asked questions
How is FOB calculated?
FOB = ex-factory price + inland transport to port + export clearance and documentation. It includes your profit and any commission paid out of the price.
What is the difference between FOB and CIF?
Under FOB the buyer pays sea freight and insurance; under CIF the seller pays them. CIF = FOB + freight + insurance.
What is EXW?
Ex-Works — the buyer collects goods from the factory and pays everything from there, including export clearance.
Does this calculator use live exchange rates?
No. You enter the exchange rate so your quote matches your bank's rate or forward contract.