China EXW to FOB, CIF and DDP Price Conversion Calculator
Chinese suppliers often quote EXW, FOB or a delivered price, and three quotes in three Incoterms are impossible to compare. This calculator converts an EXW price into FOB, CIF and DDP so you can compare on the same basis and see the real landed cost.
Your numbers
Price at the supplier's factory gate.
Total for the shipment.
Rate on insured value, which is 110% of CIF.
Use your destination country's rate.
Port charges, customs broker, trucking to your site.
Your results
Estimate for quote comparison only. Real duty, VAT valuation rules, insurance terms and local charges vary by country, shipment and carrier. VAT or GST recoverable by the importer is a cash timing item, not a cost, so treat the VAT line accordingly.
FOB and CIF total vs ocean freight
Sweeps Ocean or air freight from 500 to 8000, holding your other inputs fixed.
Landed cost in your ERP
Optional: a review of how freight, duty and insurance are allocated into item cost in your ERP.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Enter the EXW unit price and quantity, then the shipment-level costs: trucking to port, export clearance, origin terminal handling and ocean freight. Add your insurance rate, the destination duty and VAT rates and your destination charges. The result shows FOB, CIF and DDP totals and the DDP price per unit. To compare a supplier's FOB quote, copy its FOB figure and see which EXW price would produce it, or change the freight to match.
What changes between terms
Under EXW the buyer takes the goods at the factory and bears nearly everything after. FOB moves loading cost, export clearance and port charges onto the seller up to the vessel. CIF adds main carriage and minimum insurance. DDP puts import duty, taxes and delivery to the named place on the seller. Incoterms 2020 define the exact split of cost and risk, which are different things: risk transfers at the named point, not when cost is paid.
- FOB = EXW + inland haulage + export clearance + origin handling
- CIF = (FOB + freight) / (1 - 1.1 x insurance rate)
- Duty = CIF x duty rate; VAT = (CIF + duty) x VAT rate
- DDP = CIF + duty + VAT + destination charges
Reading the result
The uplift over EXW shows how much cost sits outside the factory price. A quote that looks cheap EXW can be more expensive than a higher FOB quote once trucking and port charges are added. For DDP quotes, check which party is importer of record and who bears VAT and duty, as some DDP offers shift risks that are hard to manage from abroad. The chart shows how freight volatility moves your FOB and CIF totals.
Common mistakes and ERP notes
Frequent mistakes include applying insurance to FOB value instead of the CIF formula, forgetting that duty is calculated on CIF in most countries (some use FOB), and treating recoverable VAT as cost. Customs valuation rules differ by country, so adjust if yours uses FOB. In an ERP, use landed cost or additional cost components on the purchase order so freight, duty and insurance flow into inventory valuation, instead of expensing them.
Frequently Asked Questions
Why is insurance calculated on 110%?
CIF terms require insurance covering at least 110% of the contract value, which is why the premium is rate times 110% of CIF. Because CIF includes the premium itself, the formula solves it as (FOB + freight) divided by (1 minus 1.1 times rate).
Is EXW a good term for buying from China?
EXW gives you control of freight but also obliges you to arrange export clearance in China, which is hard for a foreign buyer without a local agent. Many buyers use FOB or FCA for this reason. Choose by capability and risk, not only price.
Does duty use CIF or FOB value?
Many countries, including the EU and India, base duty on CIF value. The United States uses the transaction value, generally FOB, excluding international freight and insurance. Check your customs valuation rules and change the duty formula if your country uses FOB.
Can I use this for air freight?
Yes. Enter the air freight cost as the freight line. For air, quotes are usually per kilogram on chargeable weight, so calculate the shipment total first. Origin handling and destination charges also differ for air, so enter those that apply.
If freight, duty and insurance are not reaching your item cost, Netray can help you set up landed cost allocation in SAP, Oracle, Infor or NetSuite so purchase price variances reflect reality.
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