Incoterms Cost Allocation Calculator
Allocate landed cost components (freight, insurance, customs, delivery) between buyer and seller for the 11 Incoterms 2020 rules, and calculate total landed cost.
Results
What is it?
Incoterms (International Commercial Terms) define the split of costs, risks, and responsibilities between buyer and seller in international trade. This calculator totals all cost components of a shipment and splits them according to the selected Incoterm 2020 rule. Under DDP the seller bears all costs; under EXW the buyer bears almost all costs.
How to use
Select the Incoterm agreed in your sales contract. Enter each cost component. The calculator allocates costs to seller or buyer based on where risk and obligation transfer under that Incoterm.
Example scenario
FOB Shanghai, goods $50,000, packing $500, origin haulage $300, ocean freight $2,000, insurance $150, import duties $3,000, delivery $400. Seller bears: $50,000+$500+$300 = $50,800 (goods to ship rail). Buyer bears: $2,000+$150+$3,000+$400 = $5,550. Total landed = $56,350.
Pro tip
CIF vs FOB is a common source of trade disputes — under FOB, the buyer controls freight and insurance, often resulting in lower costs. Under CIF, the seller arranges (and profits from) freight. DDP is the simplest for the buyer but the most complex and expensive for the seller — most e-commerce cross-border sellers prefer DAP to avoid collecting import duties.