Calculate your exact B2B export and import costs

Enter your logistics fees to instantly estimate EXW, FOB, CIF, and DDP pricing and download commercial quotes.

Incoterms 2020 Pricing Calculator

Input your manufacturing and logistics costs to instantly generate a commercial breakdown for EXW, FOB, CIF, and DDP shipping terms.

Origin Costs (Export)
Freight & Destination (Import)
Structuring Cost Breakdown...
EXW Total
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FOB Total
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CIF Total
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DDP Total
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Standard Incoterms 2020 Breakdown
Incoterm Description Calculated Total (USD)

The Definitive Guide to Incoterms 2020 Pricing and Commercial Quotes

Whether you are a factory owner negotiating an export deal or an Amazon FBA seller placing a massive purchase order with an overseas supplier, the price you pay depends entirely on three letters. Incoterms (International Commercial Terms) dictate exactly where the seller's financial responsibility ends and where the buyer's risk begins. A simple misunderstanding between FOB and CIF pricing can wipe out thousands of dollars from your profit margin.

Our free Incoterms Pricing Calculator takes the guesswork out of B2B negotiations. By entering your baseline manufacturing cost and your logistical fees, this tool instantly builds a stacked cost breakdown, allowing you to generate and download a professional B2B Commercial Quote PDF in seconds.

The Golden Rule of Quotations: Never accept or send a "raw" price. If a buyer asks for a quote, always provide the EXW, FOB, and CIF options. This transparency builds trust and protects you from surprise terminal handling charges (THC) or unpredictable ocean freight fluctuations.

Understanding the Core Incoterms (EXW vs FOB vs CIF vs DDP)

To use the calculator effectively, you must understand how costs "stack" on top of each other. Incoterms are cumulative:

  • EXW (Ex Works): The bare minimum. The buyer pays for everything. The seller simply leaves the goods at their own factory loading dock.
  • FOB (Free On Board): The seller pays the inland freight and origin port fees to physically load the container onto the vessel. Once it crosses the ship's rail, the buyer takes all risk.
  • CIF (Cost, Insurance, and Freight): The seller pays the ocean freight and cargo insurance to deliver the goods to the destination port. However, the buyer is still responsible for unloading fees and customs duties.
  • DDP (Delivered Duty Paid): The ultimate "door-to-door" service. The seller pays for everything, including destination inland freight, customs clearance, and import taxes.

Integrate Your Calculations with Advanced Supply Chain Tools

Calculating your Incoterms is the foundation of your contract, but to execute the physical shipment profitably, you need exact logistical data. We recommend using our complete suite of free import/export tools to build your final quotation:

  • Step 1: Calculate Duties for DDP. If you are quoting DDP, you must know the exact import tax. Use our US Landed Cost Calculator to determine the exact duty percentage you will owe at the border.
  • Step 2: Estimate Freight Volume. Ocean freight (which dictates your CIF price) is based on volume. Run your carton dimensions through our CBM Calculator to determine your exact chargeable volume before calling a freight forwarder.
  • Step 3: Analyze Market Demand. Before committing to a massive export order, use our US Export Market Analyzer to verify that your target country actually has a historical demand for your product.
  • Step 4: Find Alternative Suppliers. If the EXW price you are getting is too high, use the US Import Sourcing Analyzer to find out where your competitors are sourcing cheaper goods globally.
  • Step 5: Generate the Final Invoice. Once the Incoterms are agreed upon, formalize the deal by generating a legally binding Commercial Invoice PDF for customs clearance.

Incoterms 2020 & B2B Freight Pricing: FAQ

Most beginner Amazon FBA sellers prefer DDP (Delivered Duty Paid) because the supplier handles all freight, customs, and inland delivery directly to the Amazon warehouse. However, experienced sellers often negotiate FOB and use their own freight forwarder to control costs and avoid hidden markups from the factory.
EXW only covers the raw manufacturing cost of the goods. To reach a CIF price, the supplier must add the cost of trucking the goods to the origin port, paying export customs and terminal handling charges, paying the main ocean freight line, and buying marine cargo insurance.
Technically, according to the official ICC Incoterms 2020 rules, FOB (Free On Board) should only be used for sea and inland waterway transport. For air freight, the correct equivalent term is FCA (Free Carrier). However, in colloquial business practice, many Chinese suppliers still incorrectly use "FOB" for air shipments.
Under DAP (Delivered at Place), the buyer is strictly responsible for paying all import duties, taxes, and customs clearance fees. The seller is only responsible for the physical transport of the goods to the designated destination.
No. The generated PDF is a Commercial Quotation (Proforma estimate) used for B2B negotiations and cost breakdowns. A legally binding contract requires a formalized Purchase Order (PO) and a Commercial Invoice agreed upon by both parties.