Customs
CIF ↔ FOB Converter
Convert FOB to CFR and CIF using the standard 110% insured-value convention, then extend to duty, VAT/GST, destination charges and total landed cost.
Incoterms 2020Landed cost
On 110% of CIF (ICC-A typical: 0.25–0.60%)
Underwriters often quote in USD or the destination currency, creating FX basis risk vs the contract currency.
CIF
$52,702.91
Insurance $202.91
CFR / CPT
$52,500.00
Landed (DDP-eq.)
$58,704.95
Duty $2,635.15 · VAT $2,766.90
| FOB | $50,000.00 |
| + Freight | $2,500.00 |
| + Insurance (110% × 0.35%) | $202.91 |
| = CIF | $52,702.91 |
| + Duty (5%) | $2,635.15 |
| + VAT/GST (5% on CIF+Duty) | $2,766.90 |
| + Destination charges | $600.00 |
| = Landed Cost | $58,704.95 |
Overview & methodology
What is the CIF to FOB converter?
The CIF to FOB converter helps traders reconcile the total landed cost by deducting freight and insurance from the CIF value to derive the FOB price. It applies the standard 110% insurance convention (Incoterms 2020) and adds duty, VAT, and destination charges for a complete DDP (Delivered Duty Paid) estimate.
Numerical Example: Landed Cost Calculation
The landed cost includes CIF value plus applicable duties, VAT/GST, and destination charges.
FOB Value$50,000
Freight$2,500
Duty (5%)$2,637
VAT (5%)$2,770
Total Landed Cost$58,513
Source: ICC - Incoterms 2020 RulesOfficial Resource
Last reviewed: August 2026
Frequently asked questions
What is the formula to convert FOB to CIF?
CIF = FOB + Ocean Freight + Marine Insurance. Insurance is conventionally computed on 110% of CIF (Institute Cargo Clauses). Because CIF appears on both sides, solve as CIF = (FOB + Freight) / (1 - insurance_rate × 1.1).
Is insurance mandatory under CIF?
Yes. Under CIF (Incoterms® 2020), the seller must arrange minimum-cover marine insurance (Institute Cargo Clauses C) for at least 110% of the invoice value in the currency of the contract. Under CIP, the required cover is upgraded to Clauses A (all-risks).
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