Incoterms 2020 · CIF

FOB to CIF calculator

Check the CIF quote before the insurance certificate shows the gap.

Enter FOB, freight and the premium rate to get the CIF price, the insured value and the premium, with the premium solved inside the price.

Last updated 2026-09-27. Math runs in your browser, no data leaves your computer.

Use the numbers for the whole shipment, all in one currency. The freight is the ocean freight to the named destination port, because CIF stops at that port and costs after it are the buyer's.

Pick the contract currency, since the insurance has to be in the same currency as the price.

Take the total from the proforma invoice, loaded on board at the port of loading.

Use the all in freight on the carrier or forwarder quote, surcharges included, because the supplier pays whatever the carrier bills.

Ask the insurer or the supplier for the rate in writing, since it changes with the goods, route and clauses covered.

The default is the 110% convention for CIF, and you should change it only when the contract names a different share.

Before the booking, screen the name on the invoice. Shipment pre-check is on the paid plans, from USD 59 a month.

General guidance only. Verify against the cited primary sources before you commit to a shipment, declaration, or contract.

Why the premium sits inside the CIF price

Under CIF the seller pays the freight to the named port and buys the cargo insurance for the buyer. The insured value is a share of the CIF price, and the premium is part of that same price, so adding a premium worked out on FOB plus freight falls slightly short. The tool solves it directly: CIF = (FOB + freight) / (1 − premium rate × insured share).

ICC's page on Incoterms 2020 says the CIF rule keeps the Institute Cargo Clauses (C) as the default level of cover, with the option to agree more, while CIP now requires cover in line with the Institute Cargo Clauses (A). Read the clause line on the certificate as closely as the amount, because the contract can call for more than the default.

The insured share defaults to 110%, the convention for CIF cover. The CIF rule sets its minimum in article A5 of the ICC publication, which is sold rather than posted free, so confirm it in your copy and write the percentage into the Incoterms 2020 clause of the contract.

Worked example. A CIF quote insured at FOB value

The booking. A supplier quotes FOB USD 48,000, freight USD 2,600 and a premium rate of 0.30% on 110% cover. The exact CIF price is 50,600 / (1 − 0.0033) = USD 50,767.53, with an insured value of USD 55,844.28 and a premium of USD 167.53. The buyer signs at that CIF price, which looks fine on paper.

The failure. The certificate that arrives with the documents shows an insured value of USD 48,000, the FOB figure. If the container is lost, the claim is capped at that amount, USD 7,844.28 below the 110% cover the buyer paid for inside the price. The choice is the usual one: accept the gap, or send the documents back before paying.

The fix. The buyer writes "insured value 110% of CIF, USD 55,844.28, Institute Cargo Clauses (C) or better" into the contract and checks the certificate against this tool's figure before the payment goes out. The supplier reissues the certificate at USD 55,844.28 and the cargo ships covered at the agreed share.

Need the full landed cost after CIF, with duty, broker fees and inland freight? The landed cost calculator carries the CIF figure through to the door.

Frequently asked

How do I convert an FOB price to CIF?

Add the ocean freight to the named destination port, then add the insurance premium. Because the premium is charged on an insured value that is itself a share of the CIF price, the exact answer is CIF = (FOB + freight) / (1 − premium rate × insured share). With FOB 48,000, freight 2,600, a 0.30% rate and 110% cover, CIF comes to 50,767.53.

What insurance does the seller buy under CIF?

ICC says the Incoterms 2020 CIF rule keeps the Institute Cargo Clauses (C) as the default level of cover, and the parties can agree a higher level. CIP, by contrast, now requires cover in line with the Institute Cargo Clauses (A). Write the clauses you want into the contract when (C) is not enough for your cargo.

Why insure at 110% rather than the invoice value?

The extra share is meant to cover costs and margin the buyer loses beyond the price paid. The CIF rule sets a minimum insured amount in its article A5, and the tool defaults to the 110% convention. ICC sells the rule text rather than publishing it free, so check the figure in your copy, and write the percentage into the sales contract so the certificate has to match it.

Where do I get the premium rate?

From the insurer, your broker or the supplier who arranges the cover under CIF. The rate depends on the goods, the packing, the route and the clauses, so ask for it in writing with the quote and enter it here as a percentage of the insured value.

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