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.
| 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
Insurance on 110% of CIF
Under CIF and CIP the seller must arrange insurance for at least 110% of the invoice value in the currency of the contract (Incoterms 2020 A5). Because the premium is a percentage of the insured value - and the insured value depends on CIF - the equation is solved iteratively: CIF = (FOB + Freight) ÷ (1 − 1.10 × rate).
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).