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.
CIF to FOB formula
FOB = CIF - freight - insurance
CIF = FOB + freight + insurance
Cargo insurance is normally placed on 110% of the CIF value, with Institute Cargo Clauses (C) as the minimum cover under Incoterms 2020 CIF. When you convert CIF back to FOB, state the premium rate and the insured base, because the premium itself depends on the CIF value.
Worked example: CIF USD 100,000, freight USD 5,000, premium 0.30% on 110% of CIF. Insurance = 100,000 × 110% × 0.30% = USD 330. FOB = 100,000 - 5,000 - 330 = USD 94,670.
| 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
Numerical Example: Landed Cost Calculation
These are the calculator's default inputs. CIF = (FOB + freight) / (1 - 1.1 x premium rate); landed cost = CIF + destination charges + duty + VAT.
Which Incoterm uses which value as the customs basis
| Incoterm | Who pays freight | Who pays insurance | Typical customs valuation basis |
|---|---|---|---|
| FOB | Buyer | Buyer (optional) | FOB in the USA; buyer adds freight and insurance to reach CIF in the EU and most markets |
| CFR | Seller | Buyer (optional) | CFR plus insurance to reach CIF where CIF basis applies; freight deducted to FOB in the USA |
| CIF | Seller | Seller (ICC C minimum, 110%) | CIF in the EU and most markets; freight and insurance deducted to FOB in the USA |
| DAP | Seller | Seller (for own risk) | Import-country basis applied to the DAP price, with post-arrival costs adjusted out |
| DDP | Seller | Seller (for own risk) | Import-country basis; seller also pays the duty and import taxes |
The USA commonly assesses duty on the FOB transaction value, while the EU and most other markets use CIF. Confirm the rule with the importing country's customs authority.
Related: CIF vs FOB explained, FOB vs CIF for import duty, import duty calculator and landed cost calculator.
Method note: calculations run in your browser using the formulas and published rule books cited on this page. Results are free estimates for planning, with no login required, and should be confirmed with your bank, broker or the official source before you commit.
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).