What is FOB price in export?

FOB (Free on Board) means the seller delivers goods loaded on the ship at origin port. All costs up to loading are seller responsibility. After loading, buyer pays freight and insurance. FOB = Ex-Works cost + packing + inland transport + customs clearance + loading charges.

What is the difference between FOB and CIF?

FOB: Seller responsibility ends when goods are loaded on ship. Buyer pays freight and insurance. CIF: Seller pays for Cost (FOB), Insurance, and Freight to destination port. After arrival, buyer takes responsibility. CIF gives buyers a complete landed cost at destination.

How do I calculate export price for India?

Export price calculation: 1) Start with Ex-Works (factory cost), 2) Add packing + labeling, 3) Add inland transport to port, 4) Add customs clearance and freight forwarder fees, 5) This gives FOB price. For CIF, add sea/air freight and marine insurance. Use our free calculator above for instant results.

What percentage is marine insurance for exports?

Marine insurance for exports is typically 0.2% to 0.5% of the cargo value. For general cargo, 0.3% is standard. For fragile or high-value goods, rates can go up to 1-2%. Always add 10% extra to the cargo value for CIF insurance calculation under standard practice.

Export Costing Calculator India 2026 — Free FOB CIF CFR Price Calculator

What is Export Costing?

Export costing is the process of calculating the total cost of exporting a product, including manufacturing, packaging, inland transport, customs clearance, freight, insurance, and profit margin. Correct export costing is critical for competitive pricing and profitability.

Indian exporters use Incoterms (International Commercial Terms) to define responsibility and cost transfer between seller and buyer. The most common Incoterms are FOB, CIF, CFR, and EXW.

EXW — Ex-Works

Seller delivers at factory gate. Buyer arranges all transport and customs.

FOB — Free on Board

Seller loads goods on ship. Buyer pays ocean freight + insurance.

CIF — Cost Insurance Freight

Seller pays freight + insurance to destination port. Most common for buyers.

DDP — Delivered Duty Paid

Seller takes full responsibility to buyer's door including import duties.

Incoterms Comparison for Indian Exporters

Incoterm	Seller Responsibility	Buyer Responsibility	Best For
EXW	Pack goods at factory	Everything after factory gate	Experienced buyers
FCA	Deliver to carrier at named place	From carrier onwards	Air freight shipments
FOB	Load on vessel at origin port	Ocean freight + insurance + destination	Indian exporters (default)
CFR	FOB + Ocean freight	Insurance + destination charges	Buyers who prefer net landed cost
CIF	FOB + Freight + Insurance	Destination customs + delivery	Most international trade
DDP	Everything to buyer's premises	Nothing	Buyers wanting door delivery

How to Calculate FOB Price for Export from India

FOB Price = Ex-Works Cost + Packing Charges + Inland Freight (factory to port) + Customs Clearance & Documentation + CHA/Freight Forwarder Charges + Loading/THC at Origin

For Indian exporters, additional costs include: DGFT registration fees, bank charges for LC handling (0.5–1.5%), export inspection fees, and GST refund lead time impact on cash flow.

Marine Insurance for CIF Exports

Marine insurance for CIF exports is typically calculated as a percentage of the cargo value (CIF value). Standard formula: Insurance = (CIF Value × 110%) × Rate. The 110% rule adds 10% for incidental costs. Typical rates: 0.15–0.5% for general cargo, up to 1.5% for fragile/high-value goods.

Export Costing FAQs

Standard export profit margins vary by sector. Textiles: 8–15%, Pharma: 15–30%, Engineering goods: 10–20%, Agricultural products: 12–25%, Gems & Jewellery: 8–15%. Margins are typically higher than domestic sales due to export benefits like MEIS/RoDTEP schemes.

Indian exporters get: 1) IGST refund on exports under LUT, 2) RoDTEP (Remission of Duties & Taxes on Exported Products) 0.5–4.3% of FOB value, 3) Advance Authorisation for duty-free import of inputs, 4) EPCG scheme for capital goods, 5) Interest Equalisation Scheme on export credit.

Ocean freight is quoted per TEU (20ft container) or per tonne/CBM. From India to USA: $2,000–4,500/TEU. To Europe: $1,500–3,500/TEU. To Middle East: $500–1,200/TEU. Air freight is per kg: $2–6/kg to USA, $1.5–4/kg to Gulf. Always get multiple freight quotes before finalising export price.

Mandatory export documents: Commercial Invoice, Packing List, Bill of Lading/Airway Bill, Shipping Bill (customs), Certificate of Origin (if required), IEC (Import Export Code), GST LUT/Bond for zero-rated exports. Additional documents: Quality Certificate, Phytosanitary Certificate (food/agri), Lab Test Reports (pharma), Letter of Credit documents.

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