Incoterms Cost & Risk Calculator

What it does

It anchors a delivery-term decision not to judgment but to the letter of ICC Incoterms® 2020 (Pub. 723). For each candidate rule (EXW, FCA, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP) it fills a 12-line cost matrix using the logic of the A9/B9 cost articles — answering "how far does the seller pay" line by line, from packing to import VAT. It produces three layers: (1) cost split (who pays: Seller/Buyer), (2) risk-transfer point — marking the point where cost passes and the point where damage/loss risk passes separately (in the C-terms — CPT/CIP/CFR/CIF — the seller pays carriage but risk passes to the buyer at loading; the costliest professional trap), and (3) landed cost — total cost delivered to the buyer = goods + freight + insurance + duty + VAT + local transport + handling. It always computes the customs base on a CIF-equivalent value (not the EXW/FOB price — a common tax-underestimation error). It ends with a 0-100 fitness score per candidate and a Recommended / Conditional / Avoid verdict.

When to use it

"Should I quote FOB or CIF?", "What's our landed cost if we offer DDP?", "If I add freight+insurance+customs to the EXW price, what's the buyer's door cost?", "Where's the risk-transfer point in this RFQ?" — any foreign-trade/sales/logistics moment requiring a delivery-term, cost-split or risk-point decision. RFQ pricing, import budgeting and contract negotiation are typical triggers.

Method / frameworks

• ICC Incoterms® 2020 (11 rules, A9/B9 cost + A2-A3/B2-B3 delivery & risk articles) — two classes: all-modes vs. sea-only. Transport-mode gate: ICC recommends FCA/CPT/CIP for containers, not FOB.
• Risk-transfer point analysis — cost point ≠ risk point, separated in C-terms.
• Institute Cargo Clauses (ICC-A/B/C) — CIP requires min. ICC-A, CIF min. ICC-C under 2020.
• Landed Cost method — both parties' door cost, proportional or absolute.
• WTO Customs Valuation / tariff — customs value is CIF-based; duty/VAT estimated on a CIF-equivalent base.

When data is uncertain, ranges are flagged "estimated" and gaps recorded; nothing is fabricated.