Incoterms
How to Calculate FOB Price
Step-by-step FOB pricing — product cost, local charges, export fees, and unit price for export quotes.
FOB price equals product cost plus all seller-side charges up to loading on board at the named port.
FOB Price Formula
FOB total = Product cost + Packaging + Inland freight + Export clearance + Port charges + Other seller fees
Divide by quantity for FOB unit price. Exclude ocean freight and marine insurance.
Calculation Steps
- List ex-factory product cost per SKU
- Add packaging and labeling
- Quote trucking to port (LCL or FCL)
- Include customs declaration and port surcharges
- Sum and divide by units — verify currency and port name
Add Margin and Validate
After FOB cost build-up, apply target margin with profit/margin calculators. Compare buyer target price and MOQ break-even.
Align with Documents
Commercial invoice FOB value must match your calculation. Packing list weights support freight buyer will book separately.
Examples
Example — 1,000 units FOB Ningbo
Cost USD 18,000 + pack USD 800 + inland USD 600 + clearance USD 350 = FOB USD 19,750 · Unit USD 19.75
Example — CIF from FOB
FOB USD 19,750 + freight USD 2,100 + insurance USD 280 = CIF USD 22,130 for buyer comparison.
FAQ
- Does FOB include profit margin?
- FOB is a delivery term — margin is your commercial choice on top of cost build-up.
- Which currency for FOB quotes?
- Usually USD or EUR — state clearly on proforma and commercial invoice.
- Are bank charges included in FOB?
- Only if they are seller-side export costs — clarify in quotation notes.
- FOB unit vs total?
- Provide both — buyers multiply unit price by quantity to reconcile MOQ.
- How often to recalculate FOB?
- When FX, freight surcharges, or raw material costs move materially.
Conclusion
Use the FOB Calculator for fast what-if analysis, then Trade Profit Calculator before sending quotations.