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Incoterms Cost Split Calculator

See which shipping costs the seller and buyer pay under each Incoterms 2020 rule, with totals for each side, the quote price and where risk passes.

Often bundled into terminal handling for containers — enter 0 if so

Incoterms rules decide where the seller's responsibility for a shipment ends and the buyer's begins: who books and pays each leg, who clears customs and when the risk of loss changes hands. Enter the cost of each step from origin to destination, pick a rule, and this calculator splits the bill between seller and buyer under Incoterms 2020, so you can compare quotes on different terms.

How to use this tool

  1. Enter the goods value and the cost of each step, from export packaging to unloading at destination.
  2. Choose an Incoterm. FCA comes in two versions, depending on whether goods are handed over at the seller's premises or at a terminal.
  3. Read what each side pays, the price the seller needs to quote and the point where risk passes.
  4. Switch terms to see how the split and the quote change.

Formula

Seller pays = sum of the costs the rule assigns to the seller

Quote price = goods value + seller's costs

Landed cost = goods value + all costs

The buyer's total stays the same when all costs pass through at cost. C rules assume the destination port/terminal; D rules assume the buyer's premises. Contract options assign destination handling or unloading costs without shifting risk. Insurance outside CIF/CIP is an optional budget allocation.

Example

Costs total $7,020 for a $50,000 order. Under FOB the seller pays packaging, loading, inland haulage, export clearance, terminal handling and loading on board — $1,300 — and would quote $51,300. Under CIF it also pays the $2,800 freight and $90 insurance, $4,190 in all. Under DDP it pays $6,870, everything except unloading, and under EXW only the $250 of export packaging.

Frequently asked questions

Why does the seller pay for packaging even under EXW?

Every Incoterms 2020 rule makes the seller package the goods suitably for transport at its own cost, unless the goods are customarily shipped unpackaged.

Is FOB right for container shipments?

ICC advises against it. Containers are usually handed to the carrier at a terminal before loading, so FCA matches the real handover point better than FOB.

Do Incoterms say who owns the goods?

No. They cover delivery, costs, risk and customs duties of each party. Transfer of ownership, payment terms and the price belong in the sales contract.

Sources

Last updated: 2026-10-30

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